Annual Report 2018

Department of Primary Industries and Regional Development Annual Report 2018 Page i Statement of compliance

For year ended 30 June 2018 Hon. Alannah MacTiernan MLC Minister for Regional Development; Agriculture and Food and Hon. Dave Kelly MLA Minister for Fisheries In accordance with section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament, the report of the Department of Primary Industries and Regional Development for the reporting period ending 30 June 2018. The report has been prepared in accordance with the provisions of the Financial Management Act 2006 and reporting requirements under the Fish Resources Management Act 1994 and Soil and Land Conservation Act 1945.

Ralph Addis Director General

Department of Primary Industries and Regional Development Annual Report 2018 Page ii Contact

Postal: Locked Bag 4, Bentley Delivery Centre WA 6983 Permission to reuse the logo must be obtained from the Street address: 3 Baron-Hay Court, South Perth WA 6151 Department of Primary Industries and Regional Development. Internet: dpird.wa.gov.au Important disclaimer Email: [email protected] Telephone: +61 1300 374 731 The Chief Executive Officer of the Department of Primary Industries and Regional Development and the State of ISSN 2209-3427 (Print) Western Australia accept no liability whatsoever by reason of ISSN 2209-3435 (Online) negligence or otherwise arising from the use or release of this Creative Commons Licence information or any part of it. The DPIRD annual report is licensed under a Creative Compliments/complaints Commons Attribution 3.0 Australian Licence. We would like to receive any feedback you have on this You are free to reuse the work under that licence on the report. condition that you attribute the State of Western Australia Compliments or complaints can be provided by completing the (Department of Primary Industries and Regional feedback form on our website or by emailing us at Development) as an author; indicate if changes were made; [email protected]. and otherwise comply with these licence conditions. Copies of this document are available in alternative License URL: formats upon request. https://creativecommons.org/licenses/by/3.0/au/legalcode If you have a hearing or speech impairment, you can contact Attribution: © Copyright State of Western Australia us through the National Relay Service: (Department of Primary Industries and Regional Development) 2018  TTY or computer with modem users, phone 133 677  Speak and listen users, phone 1300 555 727 Notice identifying other material and/or rights in this  SMS relay, phone 0423 677 767 publication: If you require the assistance of an interpreter, please contact The Creative Commons licence does not apply to the us through Translating and Interpreting Service (TIS) National Department of Primary Industries and Regional Development on 131 450. logo or the State Coat of Arms.

Department of Primary Industries and Regional Development Annual Report 2018 Page iii Guide to this report

This report presents the statutory compliance, performance In this report, we refer to the Department of Primary Industries and operational reporting for the financial year ending 30 June and Regional Development as ‘the department’ or ‘DPIRD’. 2018. It consists of four principal sections and appendices: A list of acronyms and abbreviations used is provided on the Overview — provides a snapshot of the year in review and following page. outlines who we are and what we do, the industries and communities we support, and how we go about our business. Agency performance — outlines what we have achieved along with details of how we performed against targets for the year. Significant issues — describes current and emerging issues and trends impacting on our operations. Disclosures and legal compliance — details our financial situation and performance against our key performance indicators (KPIs) along with reports on staffing, governance and legal and policy issues. Appendices — incorporates Statement by the Commissioner of Soil and Land Conservation; Breeding stock status, catch and effort ranges for WA’s major commercial and recreational fisheries; and State register of authorisations, exemptions and aquaculture leases.

Department of Primary Industries and Regional Development Annual Report 2018 Page iv Acronyms and abbreviations

AEGIC Australian Export Grains Innovation Centre MSC Marine Stewardship Council AHA Animal Health Australia NA Not applicable CLso Candidatus Liberibacter solanacearum NCoS net cost of service CSIRO Commonwealth Scientific and Industrial Research NRM natural resource management Organisation NVD National vendor declarations DAWR Department of Agriculture and Water Resources OSH occupational safety and health (Commonwealth) PSC Public Sector Commission DAIP Disability Access and Inclusion Plan PHA Plant Health Australia DAFWA Department of Agriculture and Food, Western Qfly Queensland fruit fly Australia (former department) RfR Royalties for Regions DBCA Department of Biodiversity, Conservation and R&D research and development Attractions (Western Australia) RDC Regional Development Commission DoT Department of Transport (Western Australia) RSPCA WA Royal Society for the Prevention of Cruelty to DPIRD Department of Primary Industries and Regional Animals Western Australia Development RTP Regional Telecommunications Project FTE full-time equivalent (staff hours) TACC Total Allowable Commercial Catch GRDC Grains Research and Development Corporation TPP Tomato potato psyllid GVAP gross value of agricultural production UWA University of Western Australia ICT information and communications technology WA Western Australia IFS Industry funding scheme KPI key performance indicator

Department of Primary Industries and Regional Development Annual Report 2018 Page v Contents

Statement of compliance ...... ii Disclosures and legal compliance ...... 44 Contact ...... iii Financial statements ...... 50 Guide to this report ...... iv Additional key performance indicator information ...... 142 Acronyms and abbreviations ...... v Ministerial directives ...... 176 Contents ...... vi Other financial disclosures ...... 176 Overview ...... 1 Governance disclosures ...... 182 Executive summary ...... 2 Other legal requirements ...... 182 Operational structure ...... 5 Government policy requirements ...... 188 Performance management framework ...... 12 Appendices ...... 202 Shared responsibilities with other agencies ...... 14 Appendix 1: Statement from the Commissioner of Soil and Agency performance ...... 17 Land Conservation ...... 203 Report on operations ...... 18 Appendix 2: Breeding stock status, catch and effort ranges for Western Australia’s major commercial and recreational Case studies ...... 22 fisheries ...... 210 Financial targets and results ...... 28 Appendix 3: State register of authorisations, exemptions Key performance indicator (KPI) targets and results ...... 31 and aquaculture leases ...... 224 Significant issues impacting the agency ...... 39

Department of Primary Industries and Regional Development Annual Report 2018 Page vi Overview

Department of Primary Industries and Regional Development Annual Report 2018 Page 1 Executive summary

Year at a glance

 Created a  Awarded tender for  Awarded total of strong, unified department state-of-the-art $19.5m to develop merging 3 government agencies fish health labs Albany wave energy and staff of 9 Regional at Watermans Bay project Development Commissions

 Provided $874.9m through the  Ran effective  Set up Royalties for Regions emergency beach emergency program towards 270 new and incident responses numbering system to continuing initiatives to 4 pest and disease assist emergency response to incursions into Western Australia shark attacks  Opened (WA) Albany multi-species  Eliminated a record 130 colonies as  Facilitated mollusc hatchery that is part of European wasp expected to create 350 new jobs Marine Stewardship surveillance program over 10 years Council (MSC)  Ended year with  Opened new sustainability certification for our State’s pearl and wild revenue of $453m and $11.5m abalone fisheries expenditure of $473m Northam grains research facilities

Department of Primary Industries and Regional Development Annual Report 2018 Page 2 Director General’s report Welcome to the first annual report of We have chosen to base our work around the three key the Department of Primary Industries themes of Protect, Grow and Innovate, and developed and Regional Development. complementary priorities that we believe will best serve our Our department was formed on industries and regions. These have since been enshrined in 1 July 2017 as part of the State our DPIRD Strategic Intent 2018–21. Government’s public sector reforms, We have also recruited a strong Corporate Executive team to bringing together the departments of lead our department; developed our corporate values to help Agriculture and Food, Fisheries and create a staff culture that is responsive, resilient, results- Regional Development and the staff driven and that values relationships; and made significant of the nine Regional Development progress on implementing a new organisational structure that Commissions. will enable us to deliver positive impacts across the State in The amalgamation acknowledges economic development and sustainable resource the importance of agriculture, management. fisheries and regional development to our State and the We also began a capability review at the request of the State synergies between them. It enables us to harness our Government that, once complete, will allow the government to combined knowledge and expertise to support jobs and make more informed decisions and commitments about our economic growth. future role and resourcing. I have been given the great privilege of leading DPIRD as we While significant effort was spent on integration activities, we progress the significant task of building a unified department still maintained continuity and excellence in service to our that can deliver an improved, more efficient service to our clients. primary industries and regions. We helped to grow our primary industries, including through During the year, we managed the amalgamation and the the opening of the Albany multi-species mollusc hatchery that integration of our activities in a staged approach, with a focus is expected to boost the value of the aquaculture sector; and on putting the fundamental building blocks in place – those by starting to rebuild our agricultural research and being a clear purpose, strategy and structure. development (R&D) capacity to increase the productivity and competitiveness of our State’s agribusinesses.

Department of Primary Industries and Regional Development Annual Report 2018 Page 3 Preparation for the commencement of the Aquatic Resources We continued to deliver sustainable aquatic resource Management Act 2016 on 1 January 2019 has continued, and management and a shark hazard mitigation strategy in legislation to support an emerging industrial hemp industry accordance with Government priorities. was introduced to Parliament. Key to our success has been our staff who have shown We also protected our State’s biosecurity and access to exceptional initiative and resilience during this period of change. markets through the provision of surveillance and diagnostic I would like to take this opportunity to thank them all for their services, and the effective management of a range of pest patience, perseverance and dedication to getting the job done. and disease incursions, including Queensland fruit fly (Qfly), While we have made good inroads into creating a fully brown marmorated stink bug and citrus canker. integrated department, the journey has really only just begun. Our commitment to ensuring industry and animal owners meet Our key focus in 2018/19 will be to continue to evolve into a community expectations regarding treatment of animals department that can make the most of our regional presence, remained strong through proposed amendments to animal with a focus on creating opportunity and jobs across our welfare legislation and by working closely with Commonwealth primary industries and regions. Government regulators and industry on issues such as live sheep exports. I am excited about the opportunities ahead and look forward to reporting on our progress over the coming years. Additionally, we have worked with the government to make improvements to the management of the Royalties for I would also like to thank our Ministers, the Hon. Alannah Regions program to deliver more meaningful outcomes to MacTiernan MLC and the Hon. Dave Kelly MLA, and their regional communities, including maximising local jobs and the staff for the guidance and support provided during the year. use of local suppliers and contractors. Regards We also remained committed to providing skills development and employment opportunities for Aboriginal people, including through the State Barrier Fence project where local Aboriginal contractors have been selected to maintain the fence; and by working with Aboriginal landowners, communities and pastoralists on pastoral lands reform to drive new economic opportunities across the rangelands. Ralph Addis Director General

Department of Primary Industries and Regional Development Annual Report 2018 Page 4 Operational structure

Enabling legislation The Department of Primary Industries and Regional Development was established on 1 July 2017 and operates under the Public Sector Management Act 1994.

Responsible Ministers

The Hon. Alannah MacTiernan MLC The Hon. Dave Kelly MLA Minister for Regional Development; Agriculture and Food Minister for Fisheries

Department of Primary Industries and Regional Development Annual Report 2018 Page 5 Department profile DPIRD was formed on 1 July 2017 as part of the State Government’s public sector reforms, bringing together the former departments of Agriculture and Food, Fisheries and Regional Development, along with the staff of our State’s nine Regional Development Commissions (RDCs). Our department’s functions and objectives are encapsulated in our Strategic Intent 2018–21.

Our purpose How we deliver To create enduring prosperity for all Western Australians. DPIRD strives to be a high-performing organisation of excellence, with an innovative, agile and collaborative Our role workforce, delivering effective and efficient public services. Our department ensures Western Australia’s primary We maximise our value through our strong regional footprint industries and regions are key contributors to the and connections within and across regions, which allow us to government’s agenda for economic growth and diversification, build strong partnerships with industry, government and other job creation, strong communities and better places. stakeholders and leverage resources and funding.

Our goals We advocate for sustainable primary industries and regions, collaborate across government to address complex issues,  Protect – to manage and provide for sustainable use of and support Aboriginal entrepreneurship and engagement in our natural resources and soils, and to protect Western natural resource management. Australia’s brand and reputation as a reliable producer of premium, clean and safe food, products and services. A key focus is to be future-oriented to position Western  Grow – to enable the primary industries sector and Australia for ongoing prosperity. regions to increase international competitiveness, and Our values grow in value and social amenity, strengthening these key pillars of the State’s economy. The following values underpin how we operate:  Innovate – to support a culture of scientific inquiry,  We value relationships innovation and adaptation across primary industries and  We are resilient regions to boost industry transformation, economic growth  We are responsive and employment.  We focus on results

Department of Primary Industries and Regional Development Annual Report 2018 Page 6 Organisational structure

Figure 1 Organisational structure as at 30 June 2018

Department of Primary Industries and Regional Development Annual Report 2018 Page 7 Our organisational structure is based on three pillars: Heather Brayford, Deputy Director General Sustainability and Biosecurity, Industry and Economic Sustainability and Biosecurity Development and Capability and Performance. Heather Brayford BSc, MBA, was Our Corporate Executive team consists of the Director appointed Director General of the General, the leader of each pillar, and the Managing Director Department of Fisheries in April 2015. In of Research, Development and Innovation, a directorate July 2017, Heather took the role of within Industry and Economic Development. DPIRD Deputy Director General Key functions of these areas are shown in Figure 1. Sustainability and Biosecurity. Heather has more than 30 years’ experience in Our Corporate Executive and their responsibilities are further fisheries and aquaculture, public policy, described below. regulation, biosecurity and natural resource management. A former Senior officers Fisheries Executive Director in the Northern Territory and past Director of the Fisheries Research Ralph Addis, Director General and Development Corporation, Heather is a graduate of the Ralph brings a wealth of experience from Australian Institute of Company Directors. the private, not-for-profit and government Pillar description sectors. He has a natural affinity for regional Western Australia having grown This pillar includes our biosecurity, resource management, up on a farm at Cranbrook and spent and operations and compliance functions. It is largely much of his working life in Kununurra. regulatory and market access focused, helping ensure Ralph has held a range of commercial, Western Australia maintains its enviable reputation as a not-for-profit and local government board producer of safe, sustainable and biosecure agricultural and positions and most recently was Director aquatic products. Staff in this pillar provide the technical General at the Department of Regional knowledge, legislation, policy and on-ground presence to Development. He is a Chartered maintain and enhance Western Australia’s biosecurity status, Accountant, holds a degree in Commerce, a Master of manage and protect our aquatic and agriculture resources, Agricultural Economics and is a graduate member of the and deliver compliance services. Australian Institute of Company Directors.

Department of Primary Industries and Regional Development Annual Report 2018 Page 8 Niegel Grazia, A/Deputy Director General Dr Mark Sweetingham, Managing Director Industry and Economic Development Research, Development and Innovation Niegel was appointed A/Deputy Director Mark has more than 34 years’ General, Industry and Economic experience at the former Department of Development in November 2017 having Agriculture and Food, Western Australia previously worked as Deputy Director (DAFWA), involved in the State and General at the Department of Regional national grains industry. He is Development. Niegel is passionate about internationally recognised for his work in building vibrant regions with strong crop protection, farming systems, crop economies. He worked in the oil and gas genetics and plant biosecurity. industry for 21 years, in addition to the Throughout his career, he has Pilbara Development Commission, the passionately led State and nationally Department of the Premier and Cabinet significant research and innovation and other State public sector agencies, including seven years activities in partnership with industry and agribusiness. on the staff of State Government ministers across local Directorate description government, mines, energy and emergency services portfolios. This directorate in our Industry and Economic Development pillar leads our work in undertaking and investing in Pillar description commercially relevant R&D in areas that will drive innovation Staff in this pillar drive a pipeline of high-impact, regional and advance productivity and value creation at any point development initiatives, identify new market opportunities, along the value chain. It also collaborates and partners with facilitate trade and investment, oversee the Royalties for industry, universities and across government to build local Regions (RfR) Fund and provide services to the Rural science capacity and networks to attract R&D investment and Business Development Corporation. Our Research, new technology providers to our regions; and works to ensure Development and Innovation directorate is also located within the rapid and effective translation of research findings to this pillar. commercial outcomes and economic impact.

Department of Primary Industries and Regional Development Annual Report 2018 Page 9 Melissa Murphy, Managing Director Capability and Performance Melissa has more than 20 years’ experience in the private and public sectors. She has a strong strategic policy and planning background, having most recently worked as Executive Director of Investment Management at the Department of Regional Development. Melissa also has extensive experience in freight transport and logistics strategy with the Department of Transport and international marketing and project management with Austrade. In the private sector, Melissa’s roles have included managing supply chain restructuring for major commodities, mostly in regional Australia.

Pillar description This pillar provides the foundations for DPIRD to operate as a high-performing organisation, with an innovative and collaborative workforce. It provides integrated, specialist services such as finance, human resources, information technology, asset management, procurement and corporate strategy. It plays an integral role in our broader transformation agenda through leading our organisational restructure. Staff in this pillar are the custodians of DPIRD’s common resources, delivering services to DPIRD staff, our Ministers and central government agencies.

Department of Primary Industries and Regional Development Annual Report 2018 Page 10 Administered legislation The Minister for Regional Development; Agriculture and Food and the Minister for Fisheries are responsible for administering the following Acts:

Minister for Regional Development  Industrial Hemp Act 2004  Loans (Co-operative Companies) Act 2004  Regional Development Commissions Act 1993  Marketing of Potatoes Act 1946  Royalties for Regions Act 2009 (except Part 2, excluding  Ord River Dam Catchment Area (Straying Cattle) Act 1967 sections 9 and 10, which is administered by the Treasurer  Royal Agricultural Society Act 1926 principally assisted by the Department of Treasury)  Royal Agricultural Society Act Amendment Act 1929  Rural Business Development Corporation Act 2000 Minister for Agriculture and Food  Soil and Land Conservation Act 1945  Aerial Spraying Control Act 1966  Tree Plantation Agreements Act 2003  Agriculture and Related Resources Protection Act 1976  Veterinary Chemical Control and Animal Feeding Stuffs  Agricultural and Veterinary Chemicals (Taxing) Act 1995 Act 1976  Agricultural and Veterinary Chemicals (Western Australia)  Veterinary Surgeons Act 1960 Act 1995  Western Australian Meat Industry Authority Act 1976  Agricultural Produce Commission Act 1988  Animal Welfare Act 2002 Minister for Fisheries  Biological Control Act 1986  Aquatic Resources Management Act 2016  Biosecurity and Agriculture Management Act 2007  Fish Resources Management Act 1994  Biosecurity and Agriculture Management Rates and  Fisheries Adjustment Schemes Act 1987 Charges Act 2007  Fishing and Related Industries Compensation (Marine  Biosecurity and Agriculture Management (Repeal and Reserves) Act 1997 Consequential Provisions) Act 2007  Fishing Industry Promotion Training and Management  Bulk Handling Act 1967 Levy Act 1994  Exotic Diseases of Animals Act 1993  Pearling Act 1990  Gene Technology Act 2006

Department of Primary Industries and Regional Development Annual Report 2018 Page 11 Performance management framework

DPIRD’s inaugural performance management framework – an The 2017/18 framework reflects the Machinery of Government outcome-based management framework – was presented in changes that established our department. It: the 2017/18 State Budget.  includes the outcomes, services and key effectiveness and Under this framework, we contribute to the success of the efficiency indicators that the former departments of State Government’s goal of ‘Future jobs and skills’. The Agriculture and Food, Fisheries and Regional framework has four agency-level desired outcomes within that Development were measured against in 2016/17 goal, and seeks to achieve those outcomes by delivering 12  includes the key effectiveness indicators that the RDCs services. were measured against in 2016/17, however these are The relationship between the government goals, desired now within a single desired outcome: ‘The sustainable outcomes and services is shown in Table 1. We measure economic and social development of the State’s remote performance against the outcomes and services through a and regional areas’ range of key performance indicators, which examine  presents the services of the RDCs under a single service effectiveness and efficiency. of ‘Regional development’ and does not include the key efficiency indicators that the RDCs were measured against in 2016/17. DPIRD’s results against performance indicators are audited by the Auditor General. Our results are summarised in the ‘Key performance indicator targets and results’ section of this report, and explained in detail in the ‘Additional key performance indicator information’ section. RDC key performance indicators are disclosed in their respective annual reports. This is the only year we will report against this framework. In 2018/19, DPIRD will adopt the integrated framework presented in the 2018/19 State Budget to better reflect our organisation.

Department of Primary Industries and Regional Development Annual Report 2018 Page 12 Table 1 Outcome-based management framework Government goal Desired outcome Services Conservation and sustainable 1. Fisheries management development of the State’s fish 2. Enforcement and education resources 3. Research and assessment 4. Market development, investment and market access 5. Productivity improvement and innovation A profitable, innovative and sustainable 6. Business development and promotion agrifood sector that benefits Western Future jobs and skills: 7. Productive natural resources Australia Grow and diversify the 8. Biosecurity and product integrity economy, create jobs and 9. A business environment for growth support skills development. Increased capacity of regional 10. Regional investment communities to develop economic 11. Regional policy growth and social wellbeing The sustainable economic and social development of the State’s remote and 12. Regional development regional areas

Department of Primary Industries and Regional Development Annual Report 2018 Page 13 Shared responsibilities with other agencies

DPIRD works closely with a range of national, state and local Aquaculture governments, non-government organisations and industry In conjunction with the Southern Ports Authority, the Department partners to achieve desired outcomes. Examples of our of Biodiversity, Conservation and Attractions (DBCA), RDCs, the shared responsibilities under legislation or government Department of Transport (DoT) and local governments, we are direction are outlined below. We value our strong working undertaking a major project in coastal waters off the south coast relationships with these organisations. to identify zones suitable for large-scale aquaculture In addition, we provide extensive technical expertise across the development and facilitate investment within the sector. Western Australian Government, and we have shared responsibilities with the Commonwealth and interstate At-sea safety compliance governments to ensure Australia has a strong biosecurity system. Our Fisheries and Marine Officers provide at-sea marine safety compliance and education on behalf of the DoT. Animal welfare Biosecurity Our department works with the Royal Society for the Prevention of Cruelty to Animals Western Australia (RSPCA We work with Commonwealth, state, territory and local WA), Federal Department of Agriculture and Water Resources governments to ensure Australia has a strong biosecurity (DAWR), Animal Health Australia (AHA), state agencies, system. We also work with other government agencies, jurisdictions and industry to implement national animal welfare industry bodies, local communities, Indigenous rangers, policies, standards and guidelines. Recognised Biosecurity Groups and others to help maintain the State’s biosecurity status and reputation for production We work with the RSPCA WA, DAWR; WA Police, port systems and frameworks that deliver high-quality, safe and authorities, education and research facilities, and state and reliable products. local governments to administer the Animal Welfare Act 2002; to promote livestock stewardship and ensure ethical use of We support the National Management Group and National animals for scientific research. Biosecurity Committee. We share responsibilities with DAWR, Plant Health Australia (PHA) and AHA to support Additionally, we work with state and local livestock government–industry arrangements to grow and protect our aggregation agencies and animal industries to encourage primary production industries and meet biosecurity and compliance with recognised industry codes of practice. product integrity outcomes.

Department of Primary Industries and Regional Development Annual Report 2018 Page 14 Some examples include our commitment to the Information and communications technology (ICT) Intergovernmental Agreement on Biosecurity, National Environmental Biosecurity Response Agreement, Emergency We provide ICT (helpdesk, server and network) support for Animal Disease Response Agreement and Emergency Plant the former Department of Lands functions in the Department Pest Response Deed. of Planning, Lands and Heritage, under a shared services model. We provide state policy leadership and extensive technical expertise across the Western Australian Government. For example, we chair the State’s Biosecurity Senior Officers Marine park management Group, comprising DPIRD, DBCA and the Forest Products DBCA is the lead agency responsible for establishment and Commission. management of marine reserves, while we are responsible for managing fishing, pearling and aquaculture in marine Emergency management/natural disaster relief reserves, including compliance, in accordance with the Fish Resources Management Act 1994. We work with the Office of Emergency Management, state and local governments using the State Emergency Management Committee and emergency management plans, Market access including Hazard Specific Plans (Westplans). We work in collaboration with government and industry We also work closely with other Western Australian representatives to support interstate and international market Government agencies in the coordination of responses to access and meet import/export requirements. In doing so, we natural disasters under the Western Australian Natural are able to assess and address regional pest and disease Disaster Relief and Recovery Arrangements. risks associated with trade in livestock, horticulture and crops, livestock products, plant commodities and associated agricultural equipment. Incident management We work with DAWR; state and territory quarantine Natural resource management (NRM) authorities; AHA; PHA; state and local government; industry associations and community to respond to incursions of Our department supports the State NRM Office, which national and regional exotic plant, livestock, aquatic or delivers the State NRM Program on behalf of Government. environmental pests and diseases. We work closely with the DBCA with respect to whale entanglement mitigation strategies.

Department of Primary Industries and Regional Development Annual Report 2018 Page 15 We work in partnership with the commercial fishing industry The State’s nine RDCs are statutory authorities established through funding provided to the Western Australian Fishing under the Regional Development Commissions Act 1993 to Industry Council and various affiliated sector bodies, as well provide advice to the Minister for Regional Development, and as with recreational fishers through Recfishwest. to coordinate and promote the economic development of their respective regions. Pastoral lands management Our department works closely with each commission to help We support the Department of Planning, Lands and Heritage them meet their statutory obligations in a manner that and the Pastoral Lands Board in their management of pastoral contributes to the department’s strategic priorities regarding leases through the provision of lease-level and regional-level regional opportunities and enabling environments. land condition monitoring and compliance activities. The Regional Development Council is an advisory body to the Minister for Regional Development on regional development Recreational fishing safety issues. The council comprises the chairpersons of the nine We work with Recfishwest, DBCA, Surf Lifesaving WA, local RDCs. government, emergency services and WA Police to ensure The Western Australian Regional Development Trust is an our fishing safety messages are communicated to recreational independent statutory advisory body that provides advice on fishers through websites, social media, signage and other the RfR Fund to the Minister for Regional Development. The communication channels. trust plays an important role in providing independent and impartial advice and recommendations on the management Regional development and allocation of RfR funds in consideration of the broader We work collaboratively across all portfolios of government regional development context. (state and local), multiple industries and not-for-profits in the development and delivery of regional programs and services, Shark hazard mitigation including under Royalties for Regions. In 2017/18, this We are involved in both operational responses and research included working with funding recipients and partners to initiatives as part of a suite of shark hazard mitigation develop and implement the Government’s regional strategies. We are partnering with other stakeholders such as commitments. Surf Life Saving WA, WA Police, local government and DBCA Our department shares responsibility for shaping and driving to make sure response agencies are aware of shark sightings the regional development agenda with the RDCs, Regional and tagged shark detections. This assists with distributing Development Council and the Western Australian Regional public and first responder notifications as well as the timely Development Trust. closure of beaches where required.

Department of Primary Industries and Regional Development Annual Report 2018 Page 16 Agency performance

Department of Primary Industries and Regional Development Annual Report 2018 Page 17 Report on operations

Key achievements Our key achievements during the year are reported against  We worked with state and national industry bodies and the six priorities in the DPIRD Strategic Intent 2018–21. governments to develop a national management plan for We are also reporting achievements related to the tomato potato psyllid (TPP), following detection of this amalgamation and integration of our new department as a plant pest in Western Australia in February 2017. result of the State Government’s public sector reforms.  We completed surveillance of the damaging plant bacteria Candidatus Liberibacter solanacearum (CLso) associated Biosecurity – delivering respected and recognised state with TPP. No detections of CLso were recorded in more biosecurity than 10,000 tests and we have applied for Proof of  We set up effective emergency incident responses to four Freedom recognition. pest and disease incursions – Qfly in Fremantle and in Como, brown marmorated stink bug in Jandakot and citrus Sustainability – sustaining our State's land, water and canker in the East Kimberley – to ensure agricultural aquatic resources, reputation and competitive advantage industries maintain access to national and overseas export  We facilitated Marine Stewardship Council (MSC) markets. sustainability certification for WA’s commercial wild-caught abalone fishery – the first abalone fishery in the world to  We launched our Western Australian Viticulture Industry receive MSC certification. We now have an Biosecurity Plan to build biosecurity preparedness within unprecedented eight fisheries with MSC certification, our State’s viticulture industry by identifying and making our State a world leader for sustainable fisheries. categorising potential pest threats based on their establishment and spread potential and economic impact.  We secured ongoing funding for the State Natural Resource Management (NRM) program, with $7.75m per  We developed and implemented the Biosecurity annum now available to support the work of volunteer- Intelligence Platform, which provides a snapshot of all based, not-for-profit NRM groups across our State to livestock biosecurity activities relevant to a particular achieve sustainable resource use and environmental property, to provide intelligence, support operations and conservation outcomes. identify trends.

Department of Primary Industries and Regional Development Annual Report 2018 Page 18  We worked with DBCA and the Commonwealth Department  We facilitated the first export shipment of Western of the Environment and Energy to minimise the impact of Australian-bred BRAVOTM branded apples to Singapore in fishing on Australian sea lions by finalising a science-based August 2017. In its second year of commercial sales, the network of Australian sea lion fishing exclusion zones. The new variety has had strong uptake from the apple industry. zones will protect sea lions while minimising impacts,  We worked with more than 30 State agrifood businesses including fish supply, on fishers and consumers. to develop investment opportunities, including providing  We removed the restricted season for recreational rock resource materials, offering a grant scheme, connecting lobster fishers after determining it was no longer required with professional services, and supporting approvals and to ensure sustainability of the fishery. This follows the regulatory queries. We also assisted 38 investors looking introduction of quota in the commercial West Coast rock to invest, or reinvest in our State, and built a network of lobster fishery. potential local, national and international investors.  We moved to improve fishing safety for, and the  We supported new market access for Western Australian sustainability of, the State’s unique West Coast Zone avocados into Japan and WA stone fruit into China as well recreational abalone fishery, with the fishery now running as maintained market access for wheat and barley into over summer to reduce the risk of rough weather conditions. China and WA seed potatoes into Indonesia by providing Fishing will now be on four specified Saturdays, 7am to 8am, technical market access and biosecurity status information to ensure long-term sustainability of abalone stocks. and participating in collaborative projects led by DAWR.

International competitiveness – growing internationally Regional opportunities – capturing regional opportunities to competitive industries and businesses drive economic growth, job creation, local capability and social  We launched the Agrifood and Fisheries Export Services amenity Portal, providing a central source of information to better  We provided a total of $874.9m through the RfR program equip State agrifood and fisheries exporters to develop towards 270 new and continuing initiatives across multiple their business and make the most of export opportunities. portfolios and administration of the fund, which will  We published the Market opportunities for WA fruits contribute to economic diversification, job creation and market analysis report, which provides an overview of development of services in regional areas. international markets and examines export potential for  We released the Living in the Regions Insights Report that apples, avocados, table grapes, melons, oranges, plums provides important insights into the perspectives and and strawberries. Western Australian fruit production is experiences facing regional Western Australians. The results worth $480m annually, an increase of more than 60% over present a valuable perspective on regional living that will the past four years. guide and inform future government decision making.

Department of Primary Industries and Regional Development Annual Report 2018 Page 19  We awarded $15.75m to Carnegie Clean Energy and Research, development and innovation – enabling and $3.75m to The University of Western Australia (UWA) to delivering research, development and innovation to grow our develop the Albany Wave Energy Project. The project primary industries, food processors and regional development includes installing a wave energy converter device off the  We opened the new $11.5m Northam Grains Research Albany coast; common user infrastructure for future wave Facilities to boost the State's existing grains research energy companies to test their equipment; and a new capacity and grow jobs in regional Western Australia. The world-class Wave Energy Research Centre to drive Albany purpose-built facilities include high-tech laboratories, as a hub of renewable energy expertise and jobs. processing rooms, glasshouses and field research plots to  We completed a preliminary assessment into the feasibility address our State’s production challenges. of large-scale solar in the Goldfields. In May 2018, the  We commenced relocation of our fish health R&D team to government announced our department, in collaboration the state-of-the-art Indian Ocean Marine Research Centre with the Public Utilities Office and Western Power, would at Watermans Bay, Perth to boost our research efforts, lead the implementation of the assessment’s and fish health services to industry. recommendations, including developing a proposal for a  We started a four-year research project with Horticulture virtual power plant. Innovation, the CSIRO and Pomewest to boost exports of  We implemented a world-first rebate scheme for personal WA apples to valuable northern Asian markets, including shark deterrent devices, with over 1800 residents Japan. Using orchards in Manjimup and Pemberton, the accessing a $200 rebate through approved registered project is looking at systematic pest management and retailers. The scheme includes accredited dive and surf monitoring to demonstrate our fruit is of acceptable quality. devices.  We launched a scholarship program to encourage  We established a Local Content Network comprising nine university students to undertake research on WA sheep Local Content Advisors located across the nine regions industry issues, including reproduction economic modelling supported by a policy officer and manager. Together they and technology adoption. The scholarships, funded by DPIRD and Meat and Livestock Australia Donor Company, are working to maximise local content outcomes bringing aim to increase student interest in agriculture careers and new opportunities for regional businesses, including the boost industry capacity. supply of goods and services and jobs for State Government-funded projects in the regions.  We released new lupin and oat varieties to increase the productivity and profitability of our State’s grain growers. They included PBA (Pulse Breeding Australia) Leeman – a high-yielding narrow leaf lupin; and Kowari – a high protein oat that sets a new benchmark for beta-glucan content.

Department of Primary Industries and Regional Development Annual Report 2018 Page 20 Enabling environment – creating an enabling environment Department amalgamation and public sector renewal for primary industries and regions (legislation, policy, business  We significantly progressed our organisational restructure, systems and practice) including establishing a new Executive level structure where  We assisted the Commonwealth Government with market we achieved a required 20% reduction in our Senior access bilateral discussions held with South Korea, providing Executive Service. The redesign of the rest of the organisation records of more than 100,000 exotic fruit fly trap inspections, started in February, focusing on our corporate areas first. All to support market access for Western Australian producers. areas of the department will be completed in 2019.  We provided the Department of Treasury with detailed  We developed a Values and Behaviours Charter through information about the State’s horticulture industry for its next extensive consultation with staff across the State to help 90-Day Regulatory Mapping and Reform Project, which create a healthy and dynamic culture at DPIRD. brings government agencies together to identify practical  We began integrating our multiple ICT systems and reforms to reduce excessive regulatory burden and red tape environments, including establishing a common email on businesses in priority sectors and, in turn, support platform and intranet to allow staff across the department business investment and productivity improvement. to share information and collaborate. The next step is to  We have made more than 100 sets of information, develop a single cloud-based network and connect into the including data on soils, land use, fisheries management government’s GovNext project that will provide savings and shark sightings, accessible through the State through reduced ICT infrastructure costs. Government Open Data platform. This data can be  We streamlined our human resources policies and accessed by industry, researchers and the public at any procedures across the department to give staff and time and in multiple formats. managers clarity and consistency. The number of policies  We led the development of an agricultural regulatory has so far been reduced from 20 to seven with more to be pathways mapping guide that provides information to assist integrated in 2018/19. development and investment in agriculture, particularly in the  We completed the significant task of combining the State’s north. We also worked with the Chamber of financials of the three former departments to create one Commerce and Industry of WA to survey senior executives in consolidated budget for 2018/19, including developing a agribusiness, exploring the State’s investment environment. revised outcome-based management structure that  We delivered the HARVEST Accelerator Program in reflects our fully integrated agency. partnership with agricultural innovation program Agristart  We established corporate governance processes, to support ag-tech start-ups and businesses looking to including our DPIRD Executive Committee and sub- grow and develop new opportunities and export markets. committees, annual operational planning framework and We funded nine businesses to attend. creating DPIRD corporate policies and procedures.

Department of Primary Industries and Regional Development Annual Report 2018 Page 21 Case studies

Delivering a strong signal to regional Western Australia The RTP is supplying both wide area coverage through large mobile base stations and highly targeted, local area coverage through small cell satellite installations, with a total of 231 new or improved mobile base stations being rolled out. As at 30 June 2018, 182 sites were on-air, with the remaining 49 sites due for completion in 2018/19. To capture the additional funding needed to deliver a rollout of this scale, the RTP partnered with the national Mobile Black Spot Program. This included contributing $48.9m to secure partner co-contributions of $124.6m from the Commonwealth Government and mobile network operators. The impact of the RTP has been far-reaching, ranging from improving public safety and emergency response times, to connecting communities, supporting the delivery of online

retail and government services, and improving market access One of the three new small cell satellite installations at for regional businesses. Karijini National Park In April 2018, Regional Development Minister Alannah In the modern digital age, mobile connectivity is critical for MacTiernan launched three mobile coverage services in unleashing the full potential of regional businesses and Karijini National Park in the Pilbara. communities and building a sustainable future. These small cell satellite installations have a coverage radius Our department is helping to provide this through the $65m of a few kilometres and represent a practical and cost- Regional Telecommunications Project (RTP), which is effective solution for remote locations where people focused on improving high-speed mobile voice and data congregate, such as small Aboriginal communities, coverage in regional Western Australia. roadhouses, campgrounds and station accommodation areas.

Department of Primary Industries and Regional Development Annual Report 2018 Page 22 Hatching a plan to support the aquaculture industry The hatchery was cost-effectively completed on time, thanks to the hard work of our Albany and Perth-based staff, local suppliers and industry. It will support the development of commercial shellfish farming in Western Australia and supply spat (juvenile seed stocks) to shellfish farmers in other states. It will also support the development of a South Coast aquaculture industry by helping to establish grow-out farms, which is estimated to create almost 100 direct jobs and a further 240 indirect jobs over 10 years. The State’s mollusc aquaculture sector is worth about $4.2m – the new hatchery is estimated to increase the sector’s value by up to $12m within five years. We chose the hatchery site for its access to exceptionally high-quality seawater and existing infrastructure, which was upgraded specifically to suit shellfish hatchery operations. Athair Aquaculture Pty Ltd principal Jonathan Bilton Following a procurement process, Athair Aquaculture Pty Ltd examines rock oyster spat at the new Albany multi- was granted an aquaculture licence and lease in April 2018. species mollusc hatchery Athair was later awarded a contract to operate the hatchery. Aquaculture is an emerging industry with huge potential in The state-of-the-art, biosecure hatchery is now operational Western Australia. and delivering spat to Western Australian oyster farms. Recognising this opportunity for growth, our department At full capacity, the hatchery will be able to produce about 600 established a new multi-species mollusc hatchery in Albany million mussel spat per year and 80 million rock oyster spat that was opened by the Premier and Minister for Fisheries in per year. December 2017.

Department of Primary Industries and Regional Development Annual Report 2018 Page 23 New decision tool calculates ‘bang for buck’ to improve soil Western Australian grain growers are faced with a range of Following the feedback received, we refined ROSA into a fully soil problems that limit crop productivity – but with time and operational, more user friendly format now available by money often in short supply, many struggle to determine how contacting Senior Development Officer Jeremy Lemon. to best tackle the issue. During the year our department, with Grains Research and Development Corporation (GRDC) investment, helped make this decision a little easier by developing a new decision tool known as ROSA (Ranking Options for Soil Amelioration). The tool draws on DPIRD’s extensive soil research to help growers understand the most cost-effective ways to spend limited budgets on soil amelioration (enhancement) strategies. We estimate soil problems such as top and subsoil acidity, subsoil compaction, non-wetting and surface crusting cost growers on average $330 per hectare in lost productivity and mitigation costs. However, these losses can be significantly reduced through soil amelioration that is estimated to increase productivity by an average of $125 per hectare per year – that potentially equates to more than $1 billion across the State’s grain-growing areas. ROSA ranks subsoil amelioration options – such as applying lime or deep ripping – on particular soil types or zones and works within the landholder’s budget and soil properties to provide the most cost-effective investment. An analysis typically takes about 30 minutes. Top: Jeremy Lemon and economist Liz Petersen examine We unveiled a preliminary version of ROSA in December the new ROSA decision making aid. Bottom: Deep ripping 2017 at the World Soil Day forum encouraging growers and is one option that can be assessed using ROSA advisers to test ROSA and provide feedback. About 90 consultants, growers and researchers requested a copy.

Department of Primary Industries and Regional Development Annual Report 2018 Page 24 Operation Waybill boosts Western Australia’s livestock traceability The operation sought to:  increase awareness and understanding of livestock traceability requirements, including the correct completion of national vendor declarations (NVD)/waybills  evaluate the current level of compliance  identify and address compliance gaps in collaboration with industry. During the operation, nine livestock inspectors, assisted by WA Police, checked livestock identification and movement documentation for compliance with the Biosecurity and Agriculture Management (Identification and Movement of Stock and Apiaries) Regulations 2013. WA Police Detective Sergeant Dave Haas and DPIRD Compliance with animal identification was very high, however Inspector Jack Nixon at Mt Barker saleyards during the less than 50% of NVDs were correctly completed. Our operation department is working with industry to improve NVD compliance. We have streamlined our notification system and International markets demand robust livestock traceability are encouraging the use of new technologies, such as systems and verifiable declarations of livestock health and electronic NVDs, to address the common problems identified treatments to provide evidence of food safety, product during the operation, such as omission of information and integrity and biosecurity protection. illegible handwriting. Western Australia has effective systems in place to deliver We will continue to work closely with industry on traceability to these requirements but regular monitoring is essential to support Western Australia’s excellent food safety and product ensure our livestock and livestock products can be rapidly integrity reputation and, in doing so, protect and grow market traced in the event of a food safety or disease incident. access for our State’s livestock and livestock products. In September 2017, our department, in collaboration with WA Police, coordinated a month-long traceability compliance operation, Operation Waybill.

Department of Primary Industries and Regional Development Annual Report 2018 Page 25 Success achieved in growing Asian markets DPIRD has provided small and medium-sized Western The new business’ export tonnages have increased Australian agrifood businesses with the confidence to export significantly, allowing it to provide secure employment to 11 into high-growth, premium markets in Asia. permanent staff. Through our three-year Asian Market Success (AMS) project, Participating businesses were also able to take advantage of 50 businesses accessed a range of grants, clinics, seminars, research included in the project’s Target Market Opportunities coaching and courses designed to help them venture into or report, which identified 20 high-growth, high-value premium expand their presence in Asian markets. opportunities in Asian markets for products directly related to The project aligns with DPIRD’s priorities of increasing Western Australia’s production and supply conditions. agricultural and value-added food exports and supporting the The project, due to end at 30 June 2018, received an extra regions to diversify their economies and explore investment $1.5m to continue in 2018/19 to support more agribusinesses. opportunities. A major component of the project was a $3m grant program. The grants enabled 17 companies from across the State’s livestock, grains, seafood, horticulture and other premium food and beverage industries to undertake product and market development activities or improve export capabilities to target Asian markets. One grant enabled Craig Mostyn Group’s pork business unit to establish Linley Valley Pork and Western Australian premium free range-branded pork products in Singapore. This then allowed the company to invest in a $14m upgrade of its Linley Valley abattoir and recruit 20 additional staff during the project’s timeframe.

Another grant assisted Moora Citrus to install advanced packaging technology to deliver high-quality citrus fruits to Moora Citrus Manager Shane Kay and shareholders at the premium export markets, including China, from its new company’s packing facility. Photo: Lucinda Jose, ABC Bindoon export facility.

Department of Primary Industries and Regional Development Annual Report 2018 Page 26 Accommodating an enhanced regional network Our department has ‘moved’ quickly to provide a more In most cases, staff have moved into more modern or efficient and cohesive service in the regions. renovated facilities, including at the $11.5m redeveloped After the amalgamation was announced, we started work to Northam site, which features upgraded offices, laboratories consolidate our extensive regional presence by bringing staff and field plots. Former Commission staff will also be able to from the former departments and RDCs together at existing take advantage of increased corporate support. facilities where suitable. Our clients are benefiting by being able to access more The goal was to identify co-location opportunities in towns and services at a single office. districts where we had inherited duplicate facilities to create Our department is examining further potential co-locations, savings while creating a single DPIRD culture and improving which are expected to be completed by the end of 2019. services. Our staff worked with the Department of Finance to review the location and capacity of our 150-plus buildings, including offices, research facilities and works depots. Many opportunities were identified. Co-locations to date have included former Fisheries and Agriculture staff moving in together in Kununurra and Albany, former Wheatbelt Development Commission staff relocating to the department’s offices in Northam, Moora, Merredin and Narrogin, and former Mid-West Development Commission staff moving to the department’s Geraldton office. This has so far generated about $1m worth of savings in the first year on office leases, utility costs and a streamlined fleet. Further savings are expected in 2018/19. Staff have reported that co-location has provided a great Wheatbelt Development Commission CEO Wendy opportunity to share knowledge and resources with new Newman and DPIRD Regional Director Pam I’Anson are colleagues, helping them provide an improved service. now working together at the Northam office

Department of Primary Industries and Regional Development Annual Report 2018 Page 27 Financial targets and results

Table 2a Financial targets 2017/18 2017/18 2017/18 Variation Explanation of variation3 Target1 Actual2 $’000 $’000 $’000 Total cost of services $528,413 $499,971 $28,442 As part of the 2018/19 Budget process, the 2017/18 total cost of (expense limit) service target was revised down to $516 million, primarily due to the (details from Statement recashflowing of RfR and externally funded projects, and various of comprehensive government savings measures including the Voluntary Targeted income) Separation Scheme. This means that the variance to the revised target was approximately $16 million (as opposed to the variation of $28 million as reported to the left). The remaining $16 million variance primarily relates to:  an underspend in Grants and Subsidies of $35 million (mainly due to underspends across the department’s RfR-funded projects)  depreciation expenses being lower than budgeted by $8 million (due to revised depreciation estimates for the Gascoyne Food Bowl pipeline, Grains Innovation precinct and the State Barrier Fence)  an overspend in Other Expenses (mainly due to a $28 million devaluation of land and buildings at the department’s South Perth site and the Garrjang Workers’ Accommodation Village). Net cost of services $423,483 $378,196 $45,287 This variance of $45 million in the net cost of services includes: (details from Statement  the above-mentioned reductions in total cost of services of comprehensive  revenue being $17 million above target due to the return of income) unspent RfR funds from the local government sector.

Department of Primary Industries and Regional Development Annual Report 2018 Page 28 Table 2a Financial targets 2017/18 (continued) 2017/18 2017/18 Variation Explanation of variation3 Target1 Actual2 $’000 $’000 $’000 Total equity $527,612 $544,371 $16,759 The recashflow of RfR projects (as part of the 2017/18 Mid-year (details from Statement Review, and 2018/19 Budget process) increased this target to of financial position) $547.8 million, which is in line with actual expenditure. Net increase/(decrease) ($20,177) $19,704 $39,881 The increase in cash held is due to the department receipting the in cash held (details from return of $17m of unspent RfR funds from the local government Statement of cash flows) sector and underspending on the purchase of assets by $16m.

Approved salary expense $188,825 $185,912 $2,913 Salary expenses were lower than expected primarily due to level vacancies as a result of reduced recruitment activity since the announcement of Machinery of Government changes. 1 As specified in the 2017/18 DPIRD Budget Paper, this includes the financial targets of the department and the nine RDCs. 2 To enable comparison against the 2017/18 DPIRD Budget Paper, the actual figures in this table reflect the audited financial statements of the department and the nine RDCs. The financial information presented in the remainder of this DPIRD annual report 2017/18 does not include the financial position of the RDCs. RDCs report their audited financial statements in their respective annual reports. 3 Further explanations are contained in note 9.14 of the financial statements.

Department of Primary Industries and Regional Development Annual Report 2018 Page 29 Table 2b Working cash targets 2017/18 2017/18 Variation Explanation of variation2 Agreed Target1/ $’000 Limit Actual $’000 $’000 Agreed working cash $25,081 $25,081 NA NA limit (at Budget) Agreed working cash $24,676 $21,337 $3,339 This variation is due to the savings generated by the underspends limit (at Actuals) outlined in Table 2a above.

1 Target is as specified in the 2017/18 DPIRD Budget Paper and includes the financial position of the department and the nine RDCs. To enable comparison against the DPIRD Budget Paper, the actual figures in this table reflect the audited financial statements of the department and the nine RDCs. The financial information presented in the remainder of this DPIRD annual report 2017/18 does not include the financial position of the RDCs. RDCs report their audited financial statements in their respective annual reports. 2 Further explanations are contained in note 9.14 of the financial statements.

Department of Primary Industries and Regional Development Annual Report 2018 Page 30 Key performance indicator (KPI) targets and results

This section summarises our results against our KPI targets. Effectiveness indicators help us assess the extent to which we are successful in achieving our outcomes. Efficiency indicators help us monitor the relationship between the service delivered and the resources used to produce the service. The methods and thresholds used to measure our performance against the KPIs are consistent with those used by DPIRD’s former agencies to enable comparability with previous years. Detailed explanations of the results are provided in the ‘Additional key performance indicator information’ section that has been audited by the Auditor General. Exemption In line with Treasurer’s Instruction 904, the Under Treasurer has granted an exemption to DPIRD, allowing our department to exclude reporting on the effectiveness and efficiency KPIs of the nine RDCs, as these statutory authorities will report their relevant KPIs in their respective 2017/18 annual reports. As such, results of KPIs associated with the desired outcome: ‘The sustainable economic and social development of the State’s remote and regional areas’ and the service ‘Regional development’ are not reported here.

Department of Primary Industries and Regional Development Annual Report 2018 Page 31 Table 3 Key effectiveness indicator targets, results and variations Key effectiveness indicator 2017/18 2017/18 Variation Comment Target Actual Desired outcome: Conservation and sustainable development of the State’s fish resources 1. The proportion of fish stocks identified as not being at risk or vulnerable through 97% 97% 0% – exploitation 2. The proportion of commercial fisheries 95% 93% -2% Generally met where catches or effort levels are acceptable 3. The proportion of recreational fisheries 85% 92% 7% – where catches or effort levels are acceptable 4. The volume (tonnes) of State commercial 21,500 23,818 2,318 – fisheries (including aquaculture) production The participation rate is consistent with the long- 5. The participation rate in recreational fishing 30% 25.4% -4.6% term, slightly declining trend observed since the late 1990s. 6. Satisfaction rating of the broader community and stakeholders as to their perceptions of the extent to which the department is achieving aquatic resources management objectives: Community 85% 86.8% 1.8% – Stakeholders NA NA NA –

Department of Primary Industries and Regional Development Annual Report 2018 Page 32 Table 3 Key effectiveness indicator targets, results and variations (continued) Key effectiveness indicator 2017/18 2017/18 Variation Comment Target Actual Desired outcome: A profitable, innovative and sustainable agrifood sector that benefits Western Australia The 2017/18 Actual was influenced by the unforeseen devaluation of DPIRD’s South Perth site. The devaluation increased the net cost of 7. Proportion of co-investment in department- 25% 22.4% -2.6% service, a figure used to calculate this KPI. led initiatives If the devaluation had not occurred, the 2017/18 Actual would have been 25.2%, which would have met the target. 8. Proportion of businesses that consider the department has positively influenced the 42% 48.7% 6.7% – profitability of the sector 9. Proportion of businesses that consider the department has fostered innovation in the 44% 49.8% 5.8% – sector 10. Proportion of businesses and key stakeholders that consider the department 48% 50.9% 2.9% – has positively influenced the sustainability of the sector Desired outcome: Increased capacity of regional communities to develop economic growth and social wellbeing The 2017/18 Actual reflects the level of change 11. Client satisfaction with regional development 85% 79% -6% and disruption across the portfolio as a result of services Machinery of Government reform.

Department of Primary Industries and Regional Development Annual Report 2018 Page 33 Table 4 Key efficiency indicator targets, results and variations Key efficiency indicator 2017/18 2017/18 Variation Comment Target Actual Desired outcome: Conservation and sustainable development of the State’s fish resources Service 1 Fisheries management This target was not met due to: (1) an error in the calculation of the 2017/18 target which resulted in 1.1. Average cost per hour for management an understatement in this indicator; and (2) a (excluding grants and fisheries $159 $192 $33 reduction in hours delivered in this service, adjustments) following the implementation of the government’s Voluntary Targeted Separation Scheme. Service 2 Enforcement and education 2.1. Average cost per hour of enforcement $146 $154 $8 Generally met and education Service 3 Research and assessment 3.1. Average cost per hour of research and $111 $113 $2 Generally met assessment

Department of Primary Industries and Regional Development Annual Report 2018 Page 34 Table 4 Key efficiency indicator targets, results and variations (continued) Key efficiency indicator 2017/18 2017/18 Variation Comment Target Actual Desired outcome: A profitable, innovative and sustainable agrifood sector that benefits Western Australia Service 4 Market development, investment and market access 4.1. Net service cost as a factor of gross 0.3% 0.21% -0.09% – value of agricultural production (GVAP) This target was generally met. In addition, the 2017/18 Actual was influenced by the unforeseen 4.2. Public and private sector co-investment devaluation of DPIRD’s South Perth site, which in department-led market development 13% 12.2% -0.8% increased the net cost of this service. initiatives as a factor of the net cost of If the devaluation had not occurred, the 2017/18 this service Actual would have been 13.9%, which would have met the target. Service 5 Productivity improvement and innovation The 2017/18 Actual reflects that the net cost of this service was higher than budgeted due to a 5.1. Net service cost as a factor of GVAP 0.3% 0.41% 0.11% significant increase in the number of Government funded projects delivered by DPIRD under this service compared to the previous year.

The 2017/18 Actual was influenced by the 5.2. Public and private sector co-investment unforeseen devaluation of DPIRD’s South Perth in department-led productivity 57% 47.7% -9.3% site, which increased the net cost of this service. improvement and innovation initiatives as If the devaluation had not occurred, the 2017/18 a factor of the net cost of this service Actual would have been 53.0%.

Department of Primary Industries and Regional Development Annual Report 2018 Page 35 Table 4 Key efficiency indicator targets, results and variations (continued) Key efficiency indicator 2017/18 2017/18 Variation Comment Target Actual Desired outcome: A profitable, innovative and sustainable agrifood sector that benefits Western Australia (continued) Service 6 Business development and promotion 6.1. Net service cost as a factor of GVAP 0.2% 0.19% -0.01% – This target was generally met. In addition, the 6.2. Public and private sector co-investment 2017/18 Actual was influenced by the unforeseen in department-led business development devaluation of DPIRD’s South Perth site, which 23% 19.2% -3.8% and promotion initiatives as a factor of increased the net cost of this service. the net cost of this service If the devaluation had not occurred, the 2017/18 Actual would have been 21.7%. Service 7 Productive natural resources The 2017/18 Actual reflects a very significant increase in the net cost of this service. The 7.1. Net service cost as a factor of GVAP 0.1% 0.27% 0.17% growth was largely driven by an increase in the value of RfR and externally funded projects delivered by DPIRD.

The 2017/18 Actual was influenced by the 7.2. Public and private sector co-investment unforeseen devaluation of DPIRD’s South Perth in department-led productive resource 65% 31.6% -33.4% site, which increased the net cost of this service. management initiatives as a factor of the If the devaluation had not occurred, the 2017/18 net cost of this service Actual would have been 35.4%.

Department of Primary Industries and Regional Development Annual Report 2018 Page 36 Table 4 Key efficiency indicator targets, results and variations (continued) Key efficiency indicator 2017/18 2017/18 Variation Comment Target Actual Desired outcome: A profitable, innovative and sustainable agrifood sector that benefits Western Australia (continued) Service 8 Biosecurity and product integrity This target was generally met. In addition, if the devaluation of the South Perth site had not 8.1. Net service cost as a factor of GVAP 0.7% 0.75% 0.05% occurred, the 2017/18 Actual would have been 0.66%, which would have met the target. This target was generally met. In addition, the 8.2. Public and private sector co-investment 2017/18 Actual was influenced by the unforeseen in department-led biosecurity and devaluation of DPIRD’s South Perth site, which 18% 14.8% -3.2% product integrity initiatives as a factor of increased the net cost of this service. the net cost of this service If the devaluation had not occurred, the 2017/18 Actual would have been 16.6%. Service 9 A business environment for growth 9.1. Net service cost as a factor of GVAP 0.5% 0.43% -0.07% – 9.2. Public and private sector co-investment in department-led growth initiatives as a 9% 11.4% 2.4% – factor of the net cost of this service

Department of Primary Industries and Regional Development Annual Report 2018 Page 37 Table 4 Key efficiency indicator targets, results and variations (continued) Key efficiency indicator 2017/18 2017/18 Variation Comment Target Actual Desired outcome: Increased capacity of regional communities to develop economic growth and social wellbeing Service 10 Regional investment 10.1. Average cost per funded initiative – $28,837 $25,907 -$2,931 administered 10.2. Average internal cost per satellite site – – – – supported Service 11 Regional policy The decrease of average cost per item of written advice requiring the Minister’s attention between the target and 2017/18 Actual is mainly attributable to lower net cost of this service than 11.1. Average cost per item of written advice $11,105 $4,097 -$7,008 budgeted and higher number of written advice requiring Minister’s attention requiring the Minister’s attention. The need for additional resources to sustain this level of activity has been identified and will be addressed through organisational redesign.

Department of Primary Industries and Regional Development Annual Report 2018 Page 38 Significant issues impacting the agency

Department of Primary Industries and Regional Development Annual Report 2018 Page 39 Changing Western Australian economy/ Aquaculture industry growth regional growth Western Australia has a significant opportunity to develop a Ongoing structural changes to our State’s economy, which major aquaculture industry based on large-scale production of include a need to reduce reliance on the mining and marine finfish and shellfish, and with associated up and down resources sector, reinforce the importance of driving growth stream businesses. and diversification in our regions. The regions have significant We are supporting the industry through providing critical opportunities for growth over the long term, driven primarily by infrastructure such as the new multi-species mollusc hatchery productivity improvement and population and economic in Albany, undertaking research, developing aquaculture growth in global markets. zones, streamlining processes, and ascertaining additional To help realise these opportunities, our department is areas that may be suitable for aquaculture. focusing on initiatives to improve digital connectivity, agribusiness growth, Aboriginal development, economic Pastoral lands reform infrastructure and energy futures. The State Government is renewing the focus on pastoral lands reform to drive new economic opportunities and income Trade and investment streams across Western Australia's vast rangelands. Western Australia’s primary industries are heavily export Our department is working with the Pastoral Lands Board, focused, with exports accounting for about 80% of total pastoral lease holders and industry to investigate production. As a reliable producer of clean and safe food, our opportunities to increase economic diversification, State is well positioned to benefit from the forecast significant streamlining approval processes and boosting security of growth in food demand in Asia. tenure. There will be a focus on building the ecological We will continue to support small and medium-sized sustainability of pastoral lands through diversification and enterprises seeking to attract investment, begin exporting or attention to regeneration of soil and vegetation. Key develop new export markets through programs such as the opportunities to be explored include carbon farming, irrigated HARVEST Accelerator Program, Asian Market Success agriculture and tourism. industry events and the Investor Ready Incentive for Food and Beverage Producers.

Department of Primary Industries and Regional Development Annual Report 2018 Page 40 Changing climate and variable weather Threats from pests, weeds and diseases Climate change and climate variability continue to be Prevention, early detection, and effective response to biosecurity significant challenges for natural resource management and threats remain a priority for our department, with growth in primary industry production, with extreme weather events national and international trade and passenger movements such as frost, bushfires and marine heatwaves increasing in placing increased risk on the biosecurity of Western Australia. frequency and severity. Our department continues to respond We work closely with industry, the community and relevant to, and support primary industries to respond to this authorities to ensure our State manages biosecurity threats challenge. relating to livestock, plant, aquatic and invasive species to This includes providing planning information and decision- protect market access for Western Australian agribusiness, as making tools to support agricultural producers and land well as our environment and lifestyles. managers. We will also develop new fisheries management In 2017/18 we responded to a number of biosecurity policies in consultation with stakeholders over time to deal incursions and supported the establishment of six new with climate change effects on fish stocks. Recognised Biosecurity Groups, increasing community participation in biosecurity. Sustainability/natural resource management Expanding populations, growing global demand for food and Animal welfare new technology bring many opportunities and challenges for The demands on our department in administering the our agrifood and fisheries sectors. One of these challenges is Animal Welfare Act 2002 have continued to increase. to achieve industry growth while ensuring we use our natural We further built our animal welfare compliance team in 2017/18 resources in a sustainable way, particularly with increasing and are continuing to focus on improving community and industry consumer expectations and demand around sustainably awareness and engagement with animal welfare requirements. sourced produce. Our department has also been managing issues relating to We are taking a lead role in helping the commercial fishing animal welfare in the live animal export industry. We industry move to sustainable fishery certification. We are also recognise the strong public support for animal welfare and are working with NRM groups and grower organisations to explore working with DAWR to improve animal welfare safeguards in the science and best practice in regenerative agriculture and live export consignments. We will continue to work with our the premium food markets they can access. State’s livestock producers and processors to ensure the best outcome for Western Australian producers.

Department of Primary Industries and Regional Development Annual Report 2018 Page 41 Sharks/community safety The BAM Act review will further improve biosecurity management to protect our economy, environment and the Our department maintained a strong focus on effective community. The AW Act is being reviewed to ensure it meets measures and initiatives aimed at providing additional community expectations and animal needs and that the protection for those most at risk from shark attacks, including national animal welfare standards and guidelines can be surfers and divers. adequately applied and enforced in Western Australia. These measures included rebates for independently verified personal shark deterrents, funding for a Beach Emergency Royalties for Regions reform Numbering system, the use of drones to support helicopter and beach patrols, extending the Shark Monitoring Network to Our department manages the State Government’s RfR Fund. Esperance, and maintaining the SharkSmart website with As part of the 2017/18 State Budget, the government up-to-date information on shark movements. undertook a review of the program to prioritise the delivery of A suite of other initiatives such as a public notification system, regional election commitments and to support ongoing helicopter and beach patrols, education and awareness and sustainability of regional programs. Additionally, the Special beach enclosures continue as important elements of the Inquiry into Government Programs and Projects led by John government’s overall shark hazard mitigation program. Langoulant found while the program has led to the delivery of significant benefits in regional areas through unprecedented Legislation reform investment in communities and projects, there were opportunities for streamlining and improving the program. Our department has a significant role in the regulation of our Prior to the inquiry, we had recognised and acted on the need primary industries to ensure they are effective, sustainable for change and engaged with the Department of Treasury to and meet community expectations. negotiate a better integration of the RfR program and The new Aquatic Resources Management Act 2016 is associated governance with the broader State Government expected to commence on 1 January 2019. It replaces the budget management processes. Fish Resources Management Act 1994 and the Pearling Act We will work closely with central agencies to ensure further 1990 to provide modern effective, efficient and integrated improvements to the RfR program are implemented. fisheries and aquatic resource management. Reviews of the Animal Welfare Act 2002 (AW Act) and the Biosecurity and Agriculture Management Act 2007 (BAM Act) will be progressed during 2018/19.

Department of Primary Industries and Regional Development Annual Report 2018 Page 42 Machinery of Government changes Capability review The creation of our department as part of the government’s As part of its Service Priority Review and public sector reform public sector reforms/Machinery of Government changes program, the State Government committed to agencies required a significant amount of resources throughout the undertaking periodic capability reviews. In March 2018, the year. Our goal is to achieve a thorough and successful State Government requested our department undertake a integration to allow us to provide more efficient and effective capability review. service delivery to the Western Australian community. The review will provide a clear statement of DPIRD’s We accelerated the integration of our department through a functions, priorities and financial position, allowing the central team until, following the launch of an interim government to make more informed decisions and organisational structure in December 2017, this transitioned to commitments about the future role and resourcing of our core business. We are currently designing and implementing department in 2019/20 and beyond. our fully integrated organisational structure. The aim is to position DPIRD to continue to deliver the most efficient and effective service to stakeholders. Rebuilding agriculture R&D capacity With domestic and international markets becoming increasingly competitive, it is essential our State invests in R&D to maintain our agricultural industry’s productivity growth and innovation. In 2017/18, we commenced a major transformation of State Government involvement in agrifood R&D. This has seen the formation of a new area of the department to focus on the scientific infrastructure needed to maintain and build on the competitive advantage of Western Australia’s agrifood sector. This group will work in close collaboration with universities and other research providers to deliver benefits to the industry and government.

Department of Primary Industries and Regional Development Annual Report 2018 Page 43 Disclosures and legal compliance

Department of Primary Industries and Regional Development Annual Report 2018 Page 44 Independent auditor’s report

Department of Primary Industries and Regional Development Annual Report 2018 Page 45

Department of Primary Industries and Regional Development Annual Report 2018 Page 46

Department of Primary Industries and Regional Development Annual Report 2018 Page 47

Department of Primary Industries and Regional Development Annual Report 2018 Page 48

Department of Primary Industries and Regional Development Annual Report 2018 Page 49 Financial statements

Certification of financial statements For the reporting period ended 30 June 2018 The accompanying financial statements of the Department of Primary Industries and Regional Development have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the reporting period ending 30 June 2018 and the financial position as at 30 June 2018. At the date of signing, we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.

Ms Mandy Taylor Mr David (Ralph) Addis Chief Financial Officer Accountable Authority 14 September 2018 14 September 2018

Department of Primary Industries and Regional Development Annual Report 2018 Page 50

Statement of comprehensive income for the year ended 30 June 2018 2018 COST OF SERVICES Note $'000 Expenses Employee benefits expense 3.1.1 205,019 Supplies and services 3.3 117,461 Depreciation and amortisation expense 5.1.1, 5.2.1 16,394 Share of loss in joint venture entities using the equity method 6.6.1 2,047 Finance cost 7.2 1,892 Accommodation expenses 3.3 8,109 Other expenses 3.3 50,755 Grants and subsidies paid 3.2 70,879 Loss on disposal of non-current assets 4.6 87 Total cost of services 472,643 Income Revenue User charges and fees 4.2 50,603 Commonwealth grants and contributions 4.3 5,933 Non-government grants and subsidies received 4.4 25,486 Other revenue 4.5 38,106 Total revenue 120,128 Total income other than income from State Government 120,128 NET COST OF SERVICES 352,515 Income from State Government 4.1 Service appropriations 192,955 Resources received free of charge 1,782 Royalties for Regions Fund 137,344 Other income from State Government 643 Total income from State Government 332,724

DEFICIT FOR THE PERIOD (19,791) OTHER COMPREHESIVE INCOME Items not subsequently reclassified to net cost of services TOTAL OTHER COMPREHENSIVE INCOME 9.11 - TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (19,791)

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes. See also the ‘Schedule of Income and Expenses by Service’. As of 1 July 2017, the departments of Agriculture and Food, Fisheries and Regional Development amalgamated to establish the Department of Primary Industries and Regional Development. As this is the first reporting period for the Department of Primary Industries and Regional Development there are no comparative figures to disclose.

Department of Primary Industries and Regional Development Annual Report 2018 Page 51

Statement of financial position as at 30 June 2018 2018 ASSETS Note $'000 Current assets Cash and cash equivalents 7.3.1 11,499 Restricted cash and cash equivalents 7.3.2 113,615 Biological assets 6.5 864 Inventories 6.4 1,288 Receivables 6.1 14,817 Amounts receivable for services 6.2 4,897 Other current assets 6.3 7,489 Total current assets 154,469 Non-current assets Restricted cash and cash equivalents 7.3.2 1,045 Amounts receivable for services 6.2 121,142 Receivables 6.1 14,217 Other non-current assets 6.3 9,879 Investments accounted for using the equity method 6.6.1 12,621 Property, plant and equipment 5.1 274,730 Intangible assets 5.2 14,149 Total non-current assets 447,783 TOTAL ASSETS 602,252 LIABILITIES Current liabilities Payables 6.7 19,112 Provisions 3.1.2 38,036 Borrowings 7.1 9,098 Other current liabilities 6.8 1,106 Total current liabilities 67,352 Non-current liabilities Provisions 3.1.2 8,354 Borrowings 7.1 17,610 Total non-current liabilities 25,964 TOTAL LIABILITIES 93,316 NET ASSETS 508,936 EQUITY Contributed equity 528,727 Accumulated surplus/(deficit) (19,791) TOTAL EQUITY 9.11 508,936

The Statement of Financial Position should be read in conjunction with the accompanying notes. See also the 'Schedule of Assets and Liabilities by Service'. As of 1 July 2017, the departments of Agriculture and Food, Fisheries and Regional Development amalgamated to establish the Department of Primary Industries and Regional Development. As this is the first reporting period for the Department of Primary Industries and Regional Development there are no comparative figures to disclose.

Department of Primary Industries and Regional Development Annual Report 2018 Page 52

Statement of changes in equity for the year ended 30 June 2018

Contributed Reserves Accumulated Total equity equity surplus/(deficit) Note $'000 $'000 $'000 $'000 BALANCE AT 1 JULY 2017 Former Department of Regional Development 69,530 - - 69,530 Former Department of Fisheries 85,603 - - 85,603 Former Department of Agriculture and Food 369,149 - - 369,149 524,282 - - 524,282

Surplus/(deficit) for the period - - (19,791) (19,791) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD - - (19,791) (19,791)

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Capital appropriations 5,206 - - 5,206 Distribution to owners (761) - - (761) Total 4,445 - - 4,445

BALANCE AT 30 JUNE 2018 9.11 528,727 - (19,791) 508,936

The Statement of Changes in Equity should be read in conjunction with the accompanying notes. As of 1 July 2017, the departments of Agriculture and Food, Fisheries and Regional Development amalgamated to establish the Department of Primary Industries and Regional Development. As this is the first reporting period for the Department of Primary Industries and Regional Development there are no comparative figures to disclose.

Department of Primary Industries and Regional Development Annual Report 2018 Page 53

Statement of cash flows for the year ended 30 June 2018 2018 Note $'000 CASH FLOW FROM STATE GOVERNMENT Service appropriations 168,783 Capital contributions 5,206 Holding account drawdown 5,743 Royalties for Regions Fund 137,344 Other income from State Government 643 Net cash provided by State Government 317,719 Utilised as follows: CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee benefits (206,957) Supplies and services (107,380) Accommodation (7,725) Finance costs (1,551) GST payments on purchases (20,550) Other payments (23,130) Grants and subsidies (70,732) Receipts User charges and fees 49,635 Commonwealth grants and contributions 5,258 Interest received 2,202 GST receipts on sales 5,358 GST receipts from taxation authority 15,008 Other receipts 61,834 Net cash used in operating activities 7.3.3 (298,730) CASH FLOWS FROM INVESTING ACTIVITIES Payments Investment in joint ventures (3,000) Purchase of non-current assets (12,330) Receipts Proceeds from sale of non-current physical assets 228 Net cash used in investing activities (15,102) CASH FLOWS FROM FINANCING ACTIVITIES Payments Repayment of borrowings (4,790) Receipts Proceeds from industry 4,790 Net cash used in financing activities -

Department of Primary Industries and Regional Development Annual Report 2018 Page 54

Statement of cash flows for the year ended 30 June 2018 (continued)

2018 Note $'000

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS 3,887

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD Cash balance transferred from: Former Department of Regional Development 45,864 Former Department of Fisheries 5,439 Former Department of Agriculture and Food 70,969 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 7.3.3 126,159

The Statement of Cash Flows should be read in conjunction with the accompanying notes. As of 1 July 2017, the departments of Agriculture and Food, Fisheries and Regional Development amalgamated to establish the Department of Primary Industries and Regional Development. As this is the first reporting period for the Department of Primary Industries and Regional Development there are no comparative figures to disclose.

Department of Primary Industries and Regional Development Annual Report 2018 Page 55

Summary of consolidated account appropriations and income estimates for the year ended 30 June 2018 Estimate Actual Variance 2018 2018 DELIVERY OF SERVICES $'000 $'000 $'000 Item 24 Net amount appropriated to deliver services 179,776 189,484 9,708 Amount authorised by Other Statutes Biosecurity and Agriculture Management Act 2007 3,673 2,462 (1,211) Salaries and Allowances Act 1975 1,009 1,009 - TOTAL APPROPRIATIONS PROVIDED TO DELIVER SERVICES 184,458 192,955 8,497 CAPITAL Item 98 Capital appropriations 1,085 5,206 4,121 ADMINISTERED TRANSACTIONS Item 25 Amount provided for Administered Grants, Subsidies and Transfer Payments 1,600 1,600 - TOTAL ADMINISTERED TRANSACTIONS 1,600 1,600 - GRAND TOTAL 187,143 199,761 12,618 DETAILS OF EXPENSES BY SERVICE Market development, investment and access 27,691 20,022 (7,669) Productivity, improvement and innovation 35,243 51,912 16,669 Business development and promotion 20,139 20,128 (11) Productive natural resources 32,726 28,512 (4,214) Biosecurity and product integrity 83,072 74,866 (8,206) A business environment for growth 52,864 39,443 (13,421) Fisheries management 28,628 24,284 (4,344) Enforcement and education 41,034 44,633 3,599 Research and assessment 25,765 25,736 (29) Policy investment 66,003 106,650 40,647 Regional policy 60,926 21,706 (39,220) Support for Regional Development Commissions 28,418 14,751 (13,667) Total cost of services 502,509 472,643 (29,866) Less total income (104,930) (120,128) (15,198) NET COST OF SERVICES 397,579 352,515 (45,064) Adjustments (213,121) (159,560) 53,561 TOTAL APPROPRIATIONS PROVIDED TO DELIVER SERVICES 184,458 192,955 8,497 CAPITAL EXPENDITURE Purchase of non-current assets 28,853 12,330 (16,523) Adjustment for other funding sources (27,768) (7,124) 20,644 CAPITAL APPROPRIATIONS 1,085 5,206 4,121 DETAIL OF INCOME ESTIMATES Income disclosed as administered income (refer note 10.2) (50,433) 9,544 59,997 (50,433) 9,544 59,997 Note 9.14 ’Explanatory statement’ provides details of any significant variations between estimates and actual results for 2018. As of 1 July 2017, the departments of Agriculture and Food, Fisheries and Regional Development amalgamated to establish the Department of Primary Industries and Regional Development. As this is the first reporting period for the Department of Primary Industries and Regional Development there are no comparative figures to disclose.

Department of Primary Industries and Regional Development Annual Report 2018 Page 56

Index of notes to the financial statements for the year ended 30 June 2018

Subject Note Note title Subject Note Note title Basis of preparation 1 Statement of compliance Financing 7.1 Borrowings Basis of preparation 1 Judgements and estimates Financing 7.2 Finance costs Basis of preparation 1 Contributed equity Financing 7.3 Cash and cash equivalents Basis of preparation 1 Comparative figures Financing 7.3.1 Reconciliation of cash Basis of preparation 1 Memorandum of understanding Financing 7.3.2 Restricted cash and cash equivalents Department outputs 2.1 Department objectives Financing 7.3.3 Reconciliation of net cost of services Department outputs 2.2 Schedule of income and expenses by Financing 7.4 Commitments service Financing 7.4.1 Non-cancellable operating lease Department outputs 2.3 Schedule of assets and liabilities by service commitments Use of our funding 3.1.1 Employee benefits expenses Financing 7.4.2 Non-cancellable finance lease commitments Use of our funding 3.1.2 Employee benefits provision Financing 7.4.3 Capital commitments Use of our funding 3.2 Grants and subsidies Risks and contingencies 8.1 Financial risk management Use of our funding 3.3 Other expenses Risks and contingencies 8.2 Contingent assets and liabilities Our funding sources 4.1 Income from State Government Risks and contingencies 8.3 Fair value measurements Our funding sources 4.2 User charges and fees Other disclosures 9.1 Events occurring after the end of the Our funding sources 4.3 Commonwealth grants and contributions reporting period Our funding sources 4.4 Non-government grants and subsidies Other disclosures 9.2 Future impact of Australian Accounting received Standards Our funding sources 4.5 Other revenue Other disclosures 9.3 Key management personnel Our funding sources 4.6 Gains Other disclosures 9.4 Related party transactions Key assets 5.1 Infrastructure, property, plant and equipment Other disclosures 9.5 Related bodies Key assets 5.1.1 Depreciation and impairment Other disclosures 9.6 Affiliated bodies Key assets 5.2 Intangible assets Other disclosures 9.7 Special purpose accounts Key assets 5.2.1 Amortisation and impairment Other disclosures 9.8 Remuneration of auditors Other assets and liabilities 6.1 Receivables Other disclosures 9.9 Services provided free of charge Other assets and liabilities 6.1.1 Movement of the allowance for impairment Other disclosures 9.10 Non-current assets classified as assets held of receivables for sale Other assets and liabilities 6.2 Amounts receivable for services (Holding Other disclosures 9.11 Equity Account) Other disclosures 9.12 Supplementary financial information Other assets and liabilities 6.3 Other assets Other disclosures 9.13 Indian Ocean Territories Service Level Other assets and liabilities 6.4 Inventory Agreement Other assets and liabilities 6.5 Biological assets Other disclosures 9.14 Explanatory statement Other assets and liabilities 6.6 Joint arrangements Administered disclosures 10.1 Disclosure of administered income and Other assets and liabilities 6.6.1 Investments accounted for using the equity expenses by service method Administered disclosures 10.2 Explanatory statement for administered Other assets and liabilities 6.6.2 Jointly controlled assets items Other assets and liabilities 6.7 Payables Administered disclosures 10.3 Administered assets and liabilities Other assets and liabilities 6.8 Other liabilities

Department of Primary Industries and Regional Development Annual Report 2018 Page 57

Notes to the financial statements for the year ended 30 June 2018

1 Basis of preparation The department is a Western Australian Government entity and is controlled by the State of Western Australia, which is the ultimate parent. The entity is a not-for-profit entity (as profit is not its principal objective) and it has no cash generating units. A description of the nature of its operations and its principal activities has been included in the ‘Overview’, which does not form part of these financial statements. These annual financial statements were authorised for issue by the Accountable Authority of the department on 14 September 2018.

Statement of compliance These general purpose financial statements have been prepared in accordance with: 1. The Financial Management Act 2006 (FMA) 2. The Treasurer’s Instructions (the Instructions or TI) 3. Australian Accounting Standards (AAS) including applicable interpretations 4. Where appropriate, those AAS paragraphs applicable for not-for-profit entities have been applied. The Financial Management Act 2006 and the Treasurer’s Instructions (the Instructions) take precedence over AAS. Several AAS are modified by the Instructions to vary application, disclosure format and wording. Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements.

Basis of preparation These financial statements are presented in Australian dollars applying the accrual basis of accounting and using the historical cost convention. Certain balances will apply a different measurement basis (such as the fair value basis). Where this is the case, the different measurement basis is disclosed in the associated note. All values are rounded to the nearest thousand dollars ($’000). On 1 July 2017 the departments of Agriculture and Food, Regional Development and Fisheries were amalgamated to form the new Department of Primary Industries and Regional Development (DPIRD). The financial statements have been prepared on a going concern basis with the net assets of the amalgamated departments have been transferred to the new department that will continue to provide the department’s services.

Judgements and estimates Judgements, estimates and assumptions are required to be made about financial information being presented. The significant judgements and estimates made in the preparation of these financial statements are disclosed in the notes where amounts affected by those judgements and/or estimates are disclosed. Estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances.

Department of Primary Industries and Regional Development Annual Report 2018 Page 58

Notes to the financial statements for the year ended 30 June 2018

1 Basis of preparation (continued)

Contributed equity AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior, to transfer) before such transfers can be recognised as equity contributions. Capital appropriations have been designated as contributions by owners by TI 955 Contributions by Owners made to Wholly Owned Public Sector Entities and have been credited directly to Contributed Equity. The transfers of net assets to/from other departments, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal.

Comparative figures Comparative figures are not required as the Department of Primary Industries and Regional Development commenced on 1 July 2017.

Memorandum of understanding During the year, the department had a memorandum of understanding with the Agricultural Produce Commission and the Rural Business Development Corporation. The objective of these arrangements is to establish the types and standards of services to be provided, the basis for determining the level and the costs of services and responsibilities of the parties to the memorandum.

Department of Primary Industries and Regional Development Annual Report 2018 Page 59

Notes to the financial statements for the year ended 30 June 2018

2. Department outputs How the department operates This section includes information regarding the nature of funding the department receives and how this funding is utilised to achieve the department’s objectives. This note also provides the distinction between controlled funding and administered funding: Department objectives 2.1 Schedule of Income and Expenses by Service 2.2 Schedule of Assets and Liabilities by Service 2.3

2.1 Department objectives Mission Our department ensures that primary industries and regions are key contributors to the government’s agenda for economic growth and diversification, job creation, strong communities and better places. Services The department provides the following services:  Service 1: Market development, investment and market access  Service 2: Productivity improvement and innovation  Service 3: Business development and promotion  Service 4: Productive natural resources  Service 5: Biosecurity and product integrity  Service 6: A business environment for growth  Service 7: Fisheries management  Service 8: Enforcement and education  Service 9: Research and assessment  Service 10: Regional investment  Service 11: Regional policy  Service 12: Support for Regional Development Commissions The department administers assets, liabilities, income and expenses on behalf of government which are not controlled by, nor integral to, the function of the department. These administered balances and transactions are not recognised in the principal financial statements of the department but schedules are prepared using the same basis as the financial statements and are presented at note 10.1 ‘Disclosure of administered income and expenses by service’ and note 10.3 ‘Disclosure of administered assets and liabilities by service’.

Department of Primary Industries and Regional Development Annual Report 2018 Page 60

Notes to the financial statements for the year ended 30 June 2018

2.2 Schedule of income and expenses by service for the year ended 30 June 2018

Market Productivity Business Productive Biosecurity A business development, improvement development natural and product environment investment and and and promotion resources integrity for growth market access innovation 2018 2018 2018 2018 2018 2018 COST OF SERVICES $'000 $'000 $'000 $'000 $'000 $'000 Expenses Employee benefits expense 9,284 23,935 8,956 14,503 42,010 19,306 Depreciation and amortisation expense 835 1,433 713 1,009 2,737 1,798 Share of loss in joint venture entities using the equity method 441 - 706 - - 900 Grants and subsidies paid 3,159 8,323 1,458 2,410 5,322 5,782 Loss on disposal of non-current assets 13 24 12 17 47 31 Other expenses 6,290 18,197 8,283 10,573 24,750 11,626 Total cost of services 20,022 51,912 20,128 28,512 74,866 39,443 Income Revenue User charges and fees 428 1,428 644 1,135 6,702 1,402 Commonwealth grants and contributions 43 105 - 218 2,398 119 Non-government grants and subsidies received 1,697 13,515 2,518 3,793 2,724 1,024 Other revenue 983 3,383 1,832 1,293 2,577 2,262 Total revenue 3,151 18,431 4,994 6,439 14,401 4,807 Total income other than income from 3,151 18,431 4,994 6,439 14,401 4,807 State Government NET COST OF SERVICES 16,871 33,481 15,134 22,073 60,465 34,636 INCOME FROM STATE GOVERNMENT Service appropriation 13,349 22,157 11,146 16,320 44,719 29,418 Resources received free of charge 58 94 47 67 187 123 Royalties for Regions Fund 3,739 10,322 3,883 2,991 5,597 6,293 TOTAL INCOME FROM STATE 17,146 32,573 15,076 19,378 50,503 35,834 GOVERNMENT SURPLUS/(DEFICIT) FOR THE PERIOD 275 (908) (58) (2,695) (9,962) 1,198

The Schedule of Income and Expenses by Service should be read in conjunction with the accompanying notes. As of 1 July 2017, the departments of Agriculture and Food, Fisheries and Regional Development amalgamated to establish the Department of Primary Industries and Regional Development. As this is the first reporting period for the Department of Primary Industries and Regional Development there are no comparative figures to disclose.

Department of Primary Industries and Regional Development Annual Report 2018 Page 61

Notes to the financial statements for the year ended 30 June 2018

2.2 Schedule of income and expenses by service for the year ended 30 June 2018

Fisheries Enforcement Research Regional Regional Support for Total management and and investment policy Regional education assessment Development Commissions COST OF SERVICES 2018 2018 2018 2018 2018 2018 2018 Expenses $'000 $'000 $'000 $'000 $'000 $'000 $'000 Employee benefits expense 9,343 28,482 17,624 10,440 10,150 10,986 205,019 Depreciation and amortisation expense 1,873 2,205 983 2,628 180 - 16,394 Share of loss in joint venture entities using the equity method ------2,047 Grants and subsidies paid 755 4,348 - 35,104 4,218 - 70,879 Loss on disposal of non-current assets (56) (10) 1 4 4 - 87 Other expenses 12,369 9,608 7,128 58,474 7,154 3,765 178,217 Total cost of services 24,284 44,633 25,736 106,650 21,706 14,751 472,643 Income Revenue User charges and fees 9,905 18,042 10,401 260 256 - 50,603 Commonwealth grants and contributions - 857 1,752 441 - - 5,933 Non-government grants and subsidies received - - 215 - - - 25,486 Other revenue 753 2,345 752 17,993 3,500 433 38,106 Total revenue 10,658 21,244 13,120 18,694 3,756 433 120,128 Total income other than income from 10,658 21,244 13,120 18,694 3,756 433 120,128 State Government NET COST OF SERVICES 13,626 23,389 12,616 87,956 17,950 14,318 352,515 INCOME FROM STATE GOVERNMENT Service appropriation 13,586 24,748 14,266 1,626 1,620 - 192,955 Resources received free of charge 190 346 198 472 - - 1,782 Royalties for Regions Fund 410 - - 92,803 11,306 - 137,344 Other income from State Government - - 143 500 - - 643 TOTAL INCOME FROM STATE 14,186 25,094 14,607 95,401 12,926 - 332,724 GOVERNMENT SURPLUS/(DEFICIT) FOR THE PERIOD 560 1,705 1,991 7,445 (5,024) (14,318) (19,791)

The Schedule of Income and Expenses by Service should be read in conjunction with the accompanying notes. As of 1 July 2017, the departments of Agriculture and Food, Fisheries and Regional Development amalgamated to establish the Department of Primary Industries and Regional Development. As this is the first reporting period for the Department of Primary Industries and Regional Development there are no comparative figures to disclose.

Department of Primary Industries and Regional Development Annual Report 2018 Page 62

Notes to the financial statements for the year ended 30 June 2018

2.3 Schedule of assets and liabilities by service as at 30 June 2018

Market Productivity Business Productive Biosecurity A business development, improvement development natural and product environment investment and and resources integrity for growth and market innovation promotion access 2018 2018 2018 2018 2018 2018 $'000 $'000 $'000 $'000 $'000 $'000 ASSETS Current assets 3,729 21,439 8,605 8,191 19,383 16,441 Non-current assets 30,855 65,053 25,118 46,830 86,006 64,789 Total assets 34,584 86,492 33,723 55,021 105,389 81,230

LIABILITIES Current liabilities 2,633 5,243 2,845 4,329 9,696 6,955 Non-current liabilities 431 717 361 510 1,424 936 Total liabilities 3,064 5,960 3,206 4,839 11,120 7,891

NET ASSETS 31,520 80,532 30,517 50,182 94,269 73,339

Fisheries Enforcement Research and Regional Regional Support for Total management and education assessment investment policy Regional Development Commissions

2018 2018 2018 2018 2018 2018 2018 $'000 $'000 $'000 $'000 $'000 $'000 $'000 ASSETS Current assets 9,471 6,334 8,850 26,068 25,958 - 154,469 Non-current assets 29,073 39,329 37,970 11,404 11,356 - 447,783 Total assets 38,544 45,663 46,820 37,472 37,314 - 602,252

LIABILITIES Current liabilities 10,132 7,698 5,297 8,890 1,823 1,811 67,352 Non-current liabilities 14,418 1,633 905 3,789 386 454 25,964 Total liabilities 24,550 9,331 6,202 12,679 2,209 2,265 93,316

NET ASSETS 13,994 36,332 40,618 24,793 35,105 (2,265) 508,936

The Schedule of Assets and Liabilities by Service should be read in conjunction with the accompanying notes. As of 1 July 2017, the departments of Agriculture and Food, Fisheries and Regional Development amalgamated to establish the Department of Primary Industries and Regional Development. As this is the first reporting period for the Department of Primary Industries and Regional Development there are no comparative figures to disclose.

Department of Primary Industries and Regional Development Annual Report 2018 Page 63

Notes to the financial statements for the year ended 30 June 2018

3. Use of our funding Expenses incurred in the delivery of services This section provides additional information about how the department’s funding is applied and the accounting policies that are relevant for an understanding of the items recognised in the financial statements. The primary expenses incurred by the department in achieving its objectives and the relevant notes are:

Notes 2018 $'000 Employee benefits expense 3.1.1 205,019 Employee benefits provisions 3.1.2 46,390 Grants and subsidies paid 3.2 70,879 Supplies and services 3.3 117,461 Other expenses 3.3 50,755 Accommodation expenses 3.3 8,109

3.1.1 Employee benefits expense 2018 $'000 Employee benefits expense Wages and salaries (a) 166,999 Superannuation-defined contribution plans (b) 16,870 Long service leave 2,222 Annual leave 11,984 Other related expenses (c) 6,944 205,019

(a) Includes the value of the fringe benefit to the employee plus the fringe benefit tax component, redundancy payments of $13.6 million and leave entitlements, including superannuation contribution component. (b) Defined contribution plans include West State Superannuation (WSS), Gold State Superannuation Scheme (GSS), and Government Employees Superannuation Board Schemes (GESB) to the amount of $15.5 million and other eligible funds. (c) The department paid $1.2 million in 2017/18 to the Department of Communities for staff housing under the Government Regional Officers Housing (GROH) program.

Department of Primary Industries and Regional Development Annual Report 2018 Page 64

Notes to the financial statements for the year ended 30 June 2018

3.1.1 Employee benefits expenses (continued) Wages and salaries: Employee expenses include all costs related to employment, including wages and salaries, fringe benefits tax, leave entitlements, termination payments and WorkCover premiums. Termination benefits: Payable when employment is terminated before normal retirement date, or when an employee accepts an offer of benefits in exchange for the termination of employment. Termination benefits are recognised when the department is demonstrably committed to terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value. Superannuation: The amount recognised in profit or loss of the Statement of Comprehensive Income comprises employer contributions paid to the GSS (concurrent contributions), the WSS, the GESBs, or other superannuation funds. The employer contribution paid to the Government Employees Superannuation Board (GESB) in respect of the GSS is paid back into the Consolidated Account by the GESB. GSS (concurrent contributions) is a defined benefit scheme for the purposes of employees and whole-of-government reporting. It is however a defined contribution plan for department purposes because the concurrent contributions (defined contributions) made by the department to GESB extinguishes the department’s obligations to the related superannuation liability. The department does not recognise any defined benefit liabilities because it has no legal or constructive obligation to pay future benefits relating to its employees. The liabilities for the unfunded Pension Scheme and the unfunded GSS transfer benefits attributable to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS obligations are funded by concurrent contributions made by the department to the GESB. The GESB and other fund providers administer public sector superannuation arrangements in Western Australia in accordance with legislative requirements. Eligibility criteria for membership in particular schemes for public sector employees vary according to commencement and implementation dates.

Department of Primary Industries and Regional Development Annual Report 2018 Page 65

Notes to the financial statements for the year ended 30 June 2018

3.1.2 Employee benefits provision Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered up to the reporting date and recorded as an expense during the period the services are delivered.

2018 $'000 Current Annual leave (a) 15,813 Deferred and purchased leave (b) 360 Long service leave (c) 21,354 Total current employee benefits provision 37,527 Employee on-costs (d) 509 Total current other provisions 509 Total current provisions 38,036

Non-current Long service leave (c) 8,241 Total non-current employee benefits provision 8,241 Employee on-costs (d) 113 Total non-current other provisions 113 Total non-current provisions 8,354

Department of Primary Industries and Regional Development Annual Report 2018 Page 66

Notes to the financial statements for the year ended 30 June 2018

3.1.2 Employee benefits provision (continued)

(a) Annual leave liabilities: Annual leave liabilities have been classified as current as there is no unconditional 2018 right to defer settlement for at least 12 months after the end of the reporting period. Assessments indicate

that actual settlement of the liabilities is expected to occur as follows: $'000 Within 12 months of the end of the reporting period 11,225 More than 12 months after the reporting period 4,588 15,813 Annual leave is not expected to be settled wholly within 12 months after the end of the reporting period and is therefore considered to be ‘other long-term employee benefits’. The annual leave liability is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. When assessing expected future payments, consideration is given for expected future wage and salary levels, including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows. The provision for annual leave is classified as a current liability as the department does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.

(b) Deferred salary scheme liabilities: Classified as current where there is no unconditional right to defer settlement for at least 12 months after the end of the reporting period. Actual settlement of the liabilities is expected to occur as follows: 2018 $'000 Within 12 months of the end of the reporting period 360 More than 12 months after the reporting period - 360

Department of Primary Industries and Regional Development Annual Report 2018 Page 67

Notes to the financial statements for the year ended 30 June 2018

3.1.2 Employee benefits provision (continued) (c) Long service leave liabilities: Long service leave liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

2018 $'000 Within 12 months of the end of the reporting period 7,975 More than 12 months after the reporting period 21,620 29,595 Long service leave is not expected to be settled wholly within 12 months after the end of the reporting period and is therefore recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. When assessing expected future payments, consideration is given to expect future wage and salary levels, including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows. Unconditional long service leave provisions are classified as current liabilities as the department does not have an unconditional right to defer the settlement of the liability for at least 12 months after the end of the reporting period. Pre-conditional and conditional long service leave provisions are classified as non-current liabilities because the department has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

(d) Employment on-costs: The settlement of annual and long service leave liabilities gives rise to the payment of employment on- costs including workers’ compensation insurance. The provision is the present value of expected future payments. Employment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are included as part of ‘Other expenses, Note 3.3 (apart from the unwinding of the discount (finance cost))’ and are not included as part of the department’s ‘employee benefits expense’. The related liability is included in ‘Employment on-costs provision’. Movements in other provisions Movements in each class of provisions during the financial year, other than employee benefits, are set out below: 2018 Employment on-cost provision $'000 Carrying amount at start of period 813 Additional provisions recognised (191) Carrying amount at end of period 622

Department of Primary Industries and Regional Development Annual Report 2018 Page 68

Notes to the financial statements for the year ended 30 June 2018

3.1.2 Employee benefits provision (continued)

Sick leave Liabilities for sick leave are recognised when it is probable that sick leave paid in the future will be greater than the entitlement that will accrue in the future. Past history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non vesting, an expense is recognised in the Statement of comprehensive income for this leave as it is taken.

Deferred leave The provision for deferred leave relates to public service employees who have entered into an agreement to self-fund an additional 12 months’ leave in the fifth year of the agreement. The provision recognises the value of salary set aside for employees to be used in the fifth year. This liability is measured on the same basis as annual leave. Deferred leave is reported as a current provision as employees can leave the scheme at their discretion at any time.

Purchased leave The provision for purchased leave relates to public service employees who have entered into an agreement to self-fund up to an additional 10 weeks’ leave per calendar year. The provision recognises the value of salary set aside for employees and is measured at the nominal amounts expected to be paid when the liabilities are settled. This liability is measured on the same basis as annual leave.

Key sources of estimation uncertainty – long service leave Key estimates and assumptions concerning the future are based on historical experience and various other factors that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. Several estimates and assumptions are used in calculating the department’s long service leave provision. These include:  expected future salary rates  discount rates  employee retention rates; and  expected future payments. Changes in these estimations and assumptions may impact on the carrying amount of the long service leave provision. Any gain or loss following revaluation of the present value of long service leave liabilities is recognised as employee benefits expense.

Department of Primary Industries and Regional Development Annual Report 2018 Page 69

Notes to the financial statements for the year ended 30 June 2018

3.2 Grants and subsidies paid 2018 $'000 Recurrent Other grant payments 32,370 Regional Community Services Fund 19,263 Regional Infrastructure and Headworks Fund 16,050 Regional Reform Fund 3,196 70,879 Transactions in which the department provides goods, services, assets (or extinguishes a liability) or labour to another party without receiving approximately equal value in return are categorised as ‘Grant expenses’. Grants can either be operating or capital in nature. Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use. Grants and other transfers to third parties (other than contribution to owners) are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as grants, subsidies, personal benefit payments made in cash to individuals, other transfer payments made to public sector departments, local government, non-government schools, and community groups.

Department of Primary Industries and Regional Development Annual Report 2018 Page 70

Notes to the financial statements for the year ended 30 June 2018

3.3 Other expenses 2018 $'000 Professional services 57,926 Travel 4,890 Communications 3,454 Consumables 16,954 Lease, rent and hire costs 4,907 Consultancies expense 768 Utilities, rates and charges 3,411 Insurance 1,355 Licences, fees and registration 4,562 Advertising 1,470 Repairs and services for assets 1,966 Services purchased from non-government departments 9,162 General administration costs 6,636 Total supplies and services 117,461

Lease rentals (a) 5,770 Repairs and maintenance 2,339 Total accommodation expenses 8,109

Doubtful debts expense 85 Donations and sponsorships 558 Employment on-costs 1,277 Return of unused grants 20,000 Miscellaneous other 1,249 Fisheries adjustment scheme buybacks 38 Impairments 210 Revaluation decrement (b) 27,338 Total other expenses 50,755

Total 176,325

(a) The department paid $5.2 million to the Department of Finance for accommodation. (b) Revaluation decrement includes individual amounts of $22.6 million (land) relating to South Perth and $7.3 million (building) relating to the Garrjang Workers Accommodation Village as per the Fair Value assessment by Landgate. The balance of the overall decrement of $27.3 million includes a $2.6 million net revaluation increment from all remaining land and building as per the Fair Value assessment by Landgate.

Department of Primary Industries and Regional Development Annual Report 2018 Page 71

Notes to the financial statements for the year ended 30 June 2018

3.3 Other expenses (continued)

Supplies and services Supplies and services are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any materials held for distribution are expensed when the materials are distributed.

Accommodation expenses Operating lease payments are recognised on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. Repairs, maintenance and cleaning costs are recognised as expenses as incurred.

Building and infrastructure maintenance and equipment repairs and maintenance Repairs and maintenance costs are recognised as expenses as incurred, except where they relate to the replacement of a significant component of an asset. In that case, the costs are capitalised and depreciated.

Doubtful debt expense Doubtful debt expense is recognised as the movement in the provision for doubtful debt. Please refer to note 6.1.1 Movement of the allowance for impairment of receivables.

Employee on-costs Employee on-costs include workers’ compensation insurance and other employment on-costs. The on-costs liability associated with the recognition of annual and long service leave liabilities is included at Note 3.1.2 Employee benefit provision. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not included in employment on-costs.

Other Other operating expenses generally represent the day-to-day running costs incurred in normal operations.

Department of Primary Industries and Regional Development Annual Report 2018 Page 72

Notes to the financial statements for the year ended 30 June 2018

4 Our funding sources How we obtain our funding This section provides additional information about how the department obtains its funding and the relevant accounting policy notes that govern the recognition and measurement of this funding. The primary income received by the department and the relevant notes are:

Notes 2018 $'000 Income from State Government 4.1 332,724 User charges and fees 4.2 50,603 Commonwealth grants and contributions 4.3 5,933 Grants and subsidies received 4.4 25,486 Other revenue 4.5 38,106 Loss on disposal of non-current assets 4.6 (87)

Department of Primary Industries and Regional Development Annual Report 2018 Page 73

Notes to the financial statements for the year ended 30 June 2018

4.1 Income from State Government 2018 $'000 Appropriation received during the period: Service appropriation (a) 192,955 192,955

Resources received free of charge Landgate 28 State Solicitor's Office 923 Department of Finance 830 Department of Water and Environmental Regulation 1 1,782

Other income from State Government Department of Jobs, Tourism, Science and Innovation (b) 500 Pilbara Ports Authority 44 Southern Ports Authority 35 Mid West ports 21 Other income from State Government 43 643 Royalties for Regions Fund (c) Seizing the Opportunity Agriculture 18,007 Regional Infrastructure and Headworks Account 39,743 Regional Community Services Account 42,154 Regional and Statewide Initiatives 37,440 137,344

Total income from State Government 332,724

Department of Primary Industries and Regional Development Annual Report 2018 Page 74

Notes to the financial statements for the year ended 30 June 2018

4.1 Income from State Government (continued)

a) Service appropriations are recognised as revenues at fair value in the period in which the department gains control of the appropriated funds. The department gains control of appropriated funds at the time those funds are deposited to the department’s bank account or credited to the ‘Amounts receivable for services’ (holding account) held at Treasury. Service appropriations fund the net cost of services delivered (as set out in note 2.2). Appropriation revenue of $192.955 million comprises the following:  Cash component Service appropriations $165,312,000 Biosecurity and Agriculture Management Act 2007 $2,462,000 Salaries and Allowances Act 1975 $1,009,000  A receivable (asset) $24,172,000 The receivable (holding account – note 6.2) comprises the following:  The budgeted depreciation expense for the year  Any agreed increase in leave liabilities during the year

b) Other income from State Government: The department received $500,000 from the Department of Jobs, Tourism, Science and Innovation. This income is to support and accelerate new and emerging businesses and SMEs (small to medium enterprises) as well as diversify the Western Australian economy and create new Western Australian jobs and industries.

c) The Regional Infrastructure and Headworks Account, Regional Community Services Accounts and Regional Statewide Initiative are sub funds within the overarching ‘Royalties for Regions Fund’. The recurrent funds are committed to projects and programs in WA regional areas and are recognised as revenue when the department gains control on receipt of the funds. The department received $137,344,000 under Royalties for Regions funds in 2017/18.

Department of Primary Industries and Regional Development Annual Report 2018 Page 75

Notes to the financial statements for the year ended 30 June 2018

4.2 User charges and fees 2018 $'000 Access fees 28,440 Regulatory fees 17 Recreational licence fees 8,463 Fees for services provided under service level agreements 512 Other user charges and fees 12,460 Memorandum of understanding—services provided Agricultural Produce Commission 183 Rural Business Development Corporation 528 50,603

Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows:

Sale of goods Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership transfer to the purchaser and can be measured reliably.

Net appropriation determination The Treasurer may make a determination providing for prescribed receipts to be retained for services under the control of the department. In accordance with the determination specified in the 2017/18 Budget Statements, the department retained $259.9m in 2018 from the following:  proceeds from fees and charges  sale of goods  Commonwealth – specific purpose grants and contributions  one-off gains with a value of less than $10,000 derived from the sale of property other than real property  revenues from services provided through the establishment of memorandum of understandings  other departmental revenue.

Department of Primary Industries and Regional Development Annual Report 2018 Page 76

Notes to the financial statements for the year ended 30 June 2018

4.3 Commonwealth grants and contributions 2018 $'000 Commonwealth National Partnership Agreements 2,192 Commonwealth Agriculture Activity Grants 586 Department of Agriculture and Water Resources 970 Fisheries Research and Development Corporation 622 Plant Biosecurity Cooperative Research 140 Other grants from the Commonwealth 170 Indian Ocean Territories 1,253 5,933

Grants, donations, gifts and other non-reciprocal contributions Grant income arises from transactions described as:  non-reciprocal (where the department does not provide approximate equal value in return to a party providing goods or assets (or extinguishes a liability); or  reciprocal (where the department provides equal value to the recipient of the grant provider). The accountings for these are set out below. For non-reciprocal grants, the department recognises revenue when the grant is receivable at its fair value as and when its fair value can be reliably measured. Contributions of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. For reciprocal grants, the department recognises income when it has satisfied its performance obligations under the terms of the grant. Grants can further be split between:  general purpose grants  specific purpose grants. General purpose grants refer to grants which are not subject to conditions regarding their use. Specific purpose grants are received for a particular purpose and/or have conditions attached regarding their use.

Department of Primary Industries and Regional Development Annual Report 2018 Page 77

Notes to the financial statements for the year ended 30 June 2018

4.4 Non-government grants and subsidies received 2018 $'000 Agriculture Research Grants Account No. 1 Meat and Livestock Australia 2,398 Grains Research and Development Corporation 14,716 Rural Industry Research and Development Corporation 280 Australian Wool Innovation Pty Ltd 14 Cooperative Research Centres research grants 320 Commercial grants 6,583 Agriculture Research Grants Account No. 2 Horticulture industry 534 888 Abalone 10 Broadspectrum 13 Citic Pacific Mining Management Pty Ltd 19 Marine Fishfarmers Association of WA 150 Rio Tinto 18 Other grants and subsidies 431 Total grants and subsidies from non-government sources 25,486

4.5 Other revenue 2018 $'000 Levies and rates 4,924 Return of grant allocations 16,851 Royalties 3,028 Rents and leases 2,600 Interest revenue 2,677 Other 8,026 38,106

Department of Primary Industries and Regional Development Annual Report 2018 Page 78

Notes to the financial statements for the year ended 30 June 2018

4.6 Loss on disposal of non-current assets 2018 $'000 Proceeds from disposal of non-current assets Vehicles and buses 113 Plant and machinery 8 Marine vessels 107 228 Carrying amount of non-current assets disposed Buildings 132 Computer and communications equipment 4 Office equipment 6 Vehicles and buses 128 Plant and machinery 10 Marine vessels 35 315 Net (loss)/gain (87)

Realised and unrealised gains are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and some revaluations of non-current assets. Gains and losses on the disposal of non-current assets are presented by deducting from the proceeds on disposal the carrying amount of the asset and related selling expenses. Gains and losses are recognised in profit or loss in the Statement of Comprehensive Income (from the proceeds of sale).

Department of Primary Industries and Regional Development Annual Report 2018 Page 79

Notes to the financial statements for the year ended 30 June 2018

5 Key assets Assets the department utilises for economic benefit or service potential This section includes information regarding the key assets the department utilises to gain economic benefits or provide service potential. The section sets out both the key accounting policies and financial information about the performance of these assets:

Notes 2018 $'000 Property, plant and equipment 5.1 274,730 Intangible assets 5.2 14,149 Total key assets 288,879

5.1 Property, plant and equipment

Land Buildings Leasehold Computer and Office and Plant and Marine Vehicles Infrastructure Capital Total improvements communications other machinery vessels and works in equipment equipment buses progress 2018 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Contribution from owner 56,496 104,649 6,041 1,569 2,569 21,158 7,242 795 11,312 19,509 231,340 Additions - 13 - 465 332 460 105 133 - 9,166 10,674 Disposals - (132) - (4) (6) (47) (35) (91) - - (315) Transfers(a) 72,037 2,384 - (24) 155 744 189 184 23,007 (24,673) 74,003 Revaluations decrements (22,311) (5,027) ------(27,338) Depreciation - (4,753) (1,858) (954) (773) (2,867) (941) (269) (1,219) - (13,634) Carrying amount at end of period 106,222 97,134 4,183 1,052 2,277 19,448 6,560 752 33,100 4,002 274,730 (a) The balance in transfers includes land and buildings transfers from/(to) assets held for distribution (note 9.10).

Department of Primary Industries and Regional Development Annual Report 2018 Page 80

Notes to the financial statements for the year ended 30 June 2018

5.1 Infrastructure, property, plant and equipment (continued)

Initial recognition Items of property, plant and equipment and infrastructure costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment and infrastructure costing less than $5,000 are immediately expensed direct to the Statement of comprehensive income (other than where they form part of a group of similar items which are significant in total). Assets transferred as part of a Machinery of Government change are transferred at their fair value. The cost of a leasehold improvement is capitalised and depreciated over the shorter of the remaining term of the lease or the estimated useful life of the leasehold improvement. The initial cost for a non-financial physical asset under a finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.

Subsequent measurement Subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land and buildings, and historical cost for all other property, plant and equipment and infrastructure. Land and buildings are carried at fair value less accumulated depreciation and accumulated impairment losses. All other items of property, plant and equipment and infrastructure are stated at historical cost less accumulated depreciation and accumulated impairment losses. Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by reference to recent market transactions. In the absence of market-based evidence, fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings are specialised or where land use is restricted. Where the fair value of buildings is determined on the depreciated replacement cost basis, the accumulated depreciation is restated proportionately with the change in the gross carrying amount of the asset. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Fair value for restricted use land is determined by comparison with market evidence for land with similar appropriate utility (high restricted use land) or market value of comparable unrestricted land (low restricted use land). When buildings are revalued, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount. Land and buildings are independently valued annually by the Western Australian Land Information Authority (Valuations and Property Analytics) and recognised annually to ensure that the carrying amount does not differ materially from the asset’s fair value at the end of the reporting period. Land and buildings were revalued as at 1 July 2017 by the Western Australian Land Information Authority (Valuations and Property Analytics). The valuations were performed during the year ended 30 June 2018 and recognised at 30 June 2018. In undertaking the valuation, fair value was determined by reference to market values for land $15.0 million and buildings $5.6 million (note 8.3). For the remaining balance fair value of buildings were determined on the basis of current replacement cost and fair value of land was determined on the basis of comparison with market evidence for land with low level utility (high restricted used land).

Department of Primary Industries and Regional Development Annual Report 2018 Page 81

Notes to the financial statements for the year ended 30 June 2018

5.1 Infrastructure, property, plant and equipment (continued) The most significant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determining estimated useful life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assets and existing use assets. Upon disposal or de-recognition of an item of land and buildings, any revaluation surplus relating to that asset is retained in the asset revaluation surplus. The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets. Key sources of estimation uncertainty – Measurement of fair values A number of the department’s accounting policies and disclosures require the measurement of fair values, for both financial and non- financial assets and liabilities. Landgate provide valuation services for the department’s land and buildings. The department provides the remaining useful life and depreciated book value to Landgate to assist them in their calculation of Level 3 fair value. When measuring the fair value of an asset or a liability, the department uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:  Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities  Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)  Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The department recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Department of Primary Industries and Regional Development Annual Report 2018 Page 82

Notes to the financial statements for the year ended 30 June 2018

5.1 Infrastructure, property, plant and equipment (continued)

5.1.1 Depreciation and impairment 2018 $'000 Depreciation expense Charge for the period Buildings 4,753 Computer and communications equipment 954 Office and other equipment 773 Plant and machinery 2,867 Lease improvements 1,858 Marine vessels 941 Infrastructure 1,219 Vehicles and buses 269 Total depreciation for the period 13,634 As at 30 June 2018 there were no indications of impairment to property, plant and equipment or infrastructure. All surplus assets at 30 June 2018 have either been classified as assets held for sale or have been written-off. Please refer to note 5.2 for guidance in relation to the impairment assessment that has been performed for intangible assets. Finite useful lives All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits. Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are: Asset category Life (years) Buildings 20 to 40 and/or estimated useful life Computer and communications equipment 3 to 5 Office and other equipment 5 to 10 Plant and machinery 5 to 20 Marine vessels 5 to 6 Infrastructure 20 to 80 Vehicles and buses 5 to 10 Leased improvements are depreciated on a straight line basis over the life of the lease or the life of the asset, whichever is less. Land is not depreciated. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments should be made where appropriate. Leasehold improvements are depreciated over the shorter of the lease term and their useful lives.

Department of Primary Industries and Regional Development Annual Report 2018 Page 83

Notes to the financial statements for the year ended 30 June 2018

5.1 Infrastructure, property, plant and equipment (continued)

5.1.1 Depreciation and impairment (continued) Impairment of assets Property, plant, equipment and infrastructure are tested for any indication of impairment at the end of each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. As the department is a not-for-profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost. The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of the asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs. Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period irrespective of whether there is any indication of impairment. The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value of future cash flows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at the end of each reporting period.

Department of Primary Industries and Regional Development Annual Report 2018 Page 84

Notes to the financial statements for the year ended 30 June 2018

5.2 Intangible assets 2018 $'000 Computer software At cost 31,887 Accumulated amortisation (19,891) 11,996 Capital works in progress At cost 2,153 Total intangible assets 14,149

Reconciliation Computer software Contribution from owner 12,464 Additions 9 Transfers from capital works in progress 2,283 Amortisation expense (2,760) Carrying amount at end of period 11,996

Capital works in progress Contribution from owner 2,999 Additions 1,647 Provision for impairment (210) Transfers to computer software (2,283) Carrying amount at end of period 2,153

Department of Primary Industries and Regional Development Annual Report 2018 Page 85

Notes to the financial statements for the year ended 30 June 2018

5.2 Intangible assets (continued)

Initial recognition Acquisitions of intangible assets costing $5,000 or more and internally generated intangible assets costing $50,000 or more are capitalised. The cost of utilising the assets is expensed (amortised) over their useful lives. Costs incurred below these thresholds are immediately expensed directly to profit or loss in the Statement of comprehensive income. All acquired and internally developed intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition. An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following are demonstrated:  The technical feasibility of completing the intangible asset so that it will be available for use or sale  An intention to complete the intangible asset and use or sell it  The ability to use or sell the intangible asset  The intangible asset will generate probable future economic benefit  The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset  The ability to measure reliably the expenditure attributable to the intangible asset during its development Costs incurred in the research phase of a project are immediately expensed.

Subsequent measurement The cost model is applied for subsequent measurement of intangible assets, requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses.

5.2.1 Amortisation and impairment 2018 Amortisation expense $'000 Charge for the period Intangible assets 2,760 Total amortisation for the period 2,760

Department of Primary Industries and Regional Development Annual Report 2018 Page 86

Notes to the financial statements for the year ended 30 June 2018

5.2.1 Amortisation and impairment (continued) As at 30 June 2018 there was impairment to intangible assets (refer Note 3.3). The department held no goodwill or intangible assets with an indefinite useful life during the reporting period. Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life which is reviewed annually) on the straight line basis. All intangible assets controlled by the department have a finite useful life and zero residual value. The expected useful lives for each class of intangible asset are:

Asset category Life (years) Licences up to 10 Development costs 3 to 5 (a) Software 3 to 10 Website costs 3 to 5

(a) Software that is not integral to the operation of any related hardware.

Impairment of intangible assets Intangible assets with finite useful lives are tested for impairment annually or when an indication of impairment is identified. The policy in connection with testing for impairment is outlined in note 5.1.1.

Licences Licences have a finite useful life and are carried at cost less accumulated amortisation and accumulated impairment losses.

Development costs Research costs are expensed as incurred. Development costs incurred for an individual project are carried forward when the future economic benefits can reasonably be regarded as assured and the total project costs are likely to exceed $50,000. Other development costs are expensed as incurred.

Computer software Software that is an integral part of the related hardware is treated as property, plant and equipment. Software that is not an integral part of the related hardware is treated as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition.

Website costs Website costs are charged as expenses when they are incurred unless they relate to the acquisition or development of an asset when they may be capitalised and amortised. Generally, costs in relation to feasibility studies during the planning phase of a website, and ongoing costs of maintenance during the operating phase are expensed. Costs incurred in building or enhancing a website, to the extent that they represent probable future economic benefits that can be reliably measured, are capitalised.

Department of Primary Industries and Regional Development Annual Report 2018 Page 87

Notes to the financial statements for the year ended 30 June 2018

6 Other assets and liabilities This section sets out those assets and liabilities that arose from the department’s controlled operations and includes other assets utilised for economic benefits and liabilities incurred during normal operations:

Notes 2018 $'000 Receivables 6.1 29,034 Amounts receivable for services (holding account) 6.2 126,039 Other assets 6.3 17,368 Inventories 6.4 1,288 Biological assets 6.5 864 Investments accounted for using the equity method 6.6.1 12,621 Jointly controlled assets 6.6.2 13,057 Payables 6.7 19,112 Other liabilities 6.8 1,106

6.1 Receivables 2018 $'000 Current Receivables 4,247 Allowance for impairment of receivables (206) Accrued revenue 1,379 GST receivable 2,615 Interest receivable 184 Other debtors 6,598 Total current receivables 14,817 Non-current Other debtors 14,217 Total non-current receivables 14,217

The department does not hold any collateral or other credit enhancements as security for receivables. Receivables are recognised at original invoice amount less any allowances for uncollectable amounts (i.e. impairment). The carrying amount of net trade receivables is equivalent to fair value as it is due for settlement within 30 days.

Department of Primary Industries and Regional Development Annual Report 2018 Page 88

Notes to the financial statements for the year ended 30 June 2018

6.1.1 Movement of the allowance for impairment of receivables 2018 $'000 Reconciliation of changes in the allowances for impairment of receivables: Balance at start of period 184 Doubtful debt expense 85 Amounts written off during the period (63) Balance at end of period 206

The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written-off against the allowance account. The allowance for uncollectable amounts (doubtful debts) is raised when there is objective evidence that the department will not be able to collect the debts.

6.2 Amounts receivable for services (Holding Account) 2018 $'000 Current 4,897 Non-current 121,142 126,039 Represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability.

The reconciliation at the beginning and end of the current year and previous year is set out below. Opening balance of holding account 107,610 Non-cash appropriation 24,172 Departmental drawdown (5,743) Closing balance of Holding Account 126,039

Amounts receivable for services represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability.

The department receives funding on an accrual basis. The appropriations are paid partly in cash and partly as an asset (Holding Account Receivable). The accrued amount receivable is accessible on the emergence of the cash funding requirement to cover leave entitlements and asset replacement.

Department of Primary Industries and Regional Development Annual Report 2018 Page 89

Notes to the financial statements for the year ended 30 June 2018

6.3 Other assets 2018 $'000 Current Prepaid goods and services 265 Doppler radar maintenance (a) 531 Lease prepayments (b) 2,418 Licences and rentals 4,275 Total current assets 7,489

Non-current Doppler radar maintenance (a) 6,737 Goods and services 64 Available for sale financial assets Unlisted shares 55 Lease prepayments (b) 3,023 Total non-current assets 9,879

(a) Prepaid value of future maintenance associated with Doppler radars. The department owns Doppler radars, situated in the Wheatbelt, which are designed to provide more precise weather information to help growers in their decision making. (b) The department, on behalf of the State, has entered into a lease agreement with the Baiyungu Aboriginal Corporation. The lease is in relation to the Royalties for Regions-funded Coral Bay Services Workers’ Accommodation project. The lease is a 10-year lease that expires in 2020. At the end of the lease, the workers’ accommodation will be transferred to the Baiyungu Aboriginal Corporation unless advised otherwise within three months from lease expiry. The value of the building has been recognised as a prepayment and will be expensed annually up the lease expiry date.

6.4 Inventories 2018 $'000 Inventories held for resale Agricultural produce 102 Raw materials and stores 1,186 1,288

Inventories are measured at the lower of cost and net realisable value. The cost of inventory is based on the first-in first-out basis. Inventories not held for resale are measured at cost unless they are no longer required, in which case they are valued at net realisable value.

Department of Primary Industries and Regional Development Annual Report 2018 Page 90

Notes to the financial statements for the year ended 30 June 2018

6.5 Biological assets 2018 $'000 Livestock 571 Field crops 293 864

Balance at 1 July 1,151 Purchases 115 Sales of livestock (402) Balance at 30 June 864

Biological assets comprising livestock and field crops are valued at fair value less estimated point of sale costs and costs necessary to get them to market. A gain or loss on valuation is recognised in the Statement of comprehensive income.

6.6 Joint arrangements The department has interests in a number of joint arrangements, some of which are classified as joint operations and others as joint ventures. A joint venture is an arrangement in which the department has joint control, whereby the department has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The department recognises its investment in joint ventures using the equity method of accounting (refer to note 6.6.1). A joint operation is an arrangement in which the department has joint control, whereby the department has direct rights to its assets and obligations for its liabilities. The department recognises its share of any joint operation assets and liabilities to the extent of its interest (refer to note 6.6.1).

Department of Primary Industries and Regional Development Annual Report 2018 Page 91

Notes to the financial statements for the year ended 30 June 2018

6.6.1 Investments accounted for using the equity method 2018 $'000 Share of loss in joint venture entity using the equity method 2,047 2,047

2018 $'000 Investment in joint ventures at initial cost of investment 34,623 Share of profit/(loss) using the equity method (28,885) Recognition of gain on dilution 2,428 8,166 Loan to InterGrain Pty Ltd 4,455 12,621

The Western Australian Agriculture Authority (WAAA), a body corporate established under the Biosecurity and Agriculture Management Act 2007, is a joint venturer in:

InterGrain Pty Ltd InterGrain Pty Ltd was incorporated on 26 October 2007 and is resident in Australia. The principal activity of the joint venture is to commercialise the research from wheat and barley breeding. As at 30 June 2018, WAAA holds a 61.67% equity interest in InterGrain Pty Ltd. The department regards the investment in InterGrain Pty Ltd as a joint venture, due to the contractually agreed sharing of control over economic activity and the financial and operating decisions relating to the activity requiring the unanimous consent of the shareholders.

Australian Export Grains Innovation Centre Ltd (Limited by Guarantee) (AEGIC) AEGIC was incorporated on 24 October 2012. The primary aim of the joint venture is to lead the establishment and operation of a centre of science, technology and innovation to facilitate the competitiveness of the Australian grains industry with a particular focus on export markets. The department has no obligations with respect to liabilities incurred by InterGrain Pty Ltd and AEGIC.

Department of Primary Industries and Regional Development Annual Report 2018 Page 92

Notes to the financial statements for the year ended 30 June 2018

6.6.1 Investments accounted for using the equity method (continued) Summary financials of equity accounted investees Summary financials from the management accounts for equity accounted investees, not adjusted for the percentage ownership by the department:

2018 2018 $'000 $'000 InterGrain AEGIC Current assets 18,649 10,878 Non-current assets 2,746 1,192 Total assets 21,395 12,070

Current liabilities 7,669 1,664 Non-current liabilities 8,923 - Total liabilities 16,592 1,664

Net (liabilities)/assets 4,803 10,406

Revenue 20,750 3,077 Expenses (15,417) (11,167) Net gain/(loss) 5,333 (8,090)

Department of Primary Industries and Regional Development Annual Report 2018 Page 93

Notes to the financial statements for the year ended 30 June 2018

6.6.2 Jointly controlled assets The department has shared ownership of Crown land and buildings with the Department of Water and Environmental Regulation. The following amounts represent the fair value of the assets employed in the joint ownership:

2018 $'000 Non-current assets Land (a) (b) (c) 11,315 Building (c) 1,742 13,057

The department's share of these assets has been included in property, plant and equipment. The shared ownership of Crown land and buildings relates to the following sites: (a) Forrestfield was established in 1993 to protect fauna and flora located on the site and the department has been responsible for all costs in regards to maintaining the site and any proposed future developments. It was valued by Landgate in 2017/18 at $9.0 million. (b) The department has a 50% share of ownership of Crown land with the Department of Water and Environmental Regulation in the Mandurah Marine Operations Centre. It was valued by Landgate in 2017/18 at $0.6 million. (c) The department has a 50% share of ownership of Crown land and building with the Department of Transport in the Fremantle Marine Operations Centre. It was valued by Landgate in 2017/18 at $3.4 million (land $1.7 million, buildings $1.7 million).

Department of Primary Industries and Regional Development Annual Report 2018 Page 94

Notes to the financial statements for the year ended 30 June 2018

6.7 Payables 2018 $'000 Current Trade payables 7,942 Accrued expenses 9,081 Accrued salaries 1,336 Other payables 753 Total current 19,112

Payables are recognised at the amounts payable when the department becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as settlement is generally within 30 days. Accrued salaries represent the amount due to staff but unpaid at the end of the reporting period. Accrued salaries are settled within a fortnight of the reporting period end. The department considers the carrying amount of accrued salaries to be equivalent to its fair value. The accrued salaries suspense account (See Note 7.3.2 ‘Restricted cash and cash equivalents’) consists of amounts paid annually, from departmental appropriations for salaries expense, into a Treasury suspense account to meet the additional cash outflow for employee salary payments in reporting periods with 27 pay days instead of the normal 26. No interest is received on this account.

6.8 Other liabilities 2018 $'000 Accrued Western Australian Treasury Corporation charges 1,106 1,106

Department of Primary Industries and Regional Development Annual Report 2018 Page 95

Notes to the financial statements for the year ended 30 June 2018

7 Financing This section sets out the material balances and disclosures associated with the financing and cashflows of the department.

Notes 2018 $'000 Borrowings 7.1 26,708 Finance costs 7.2 1,892 Reconciliation of cash 7.3.1 11,499 Restricted cash and cash equivalents 7.3.2 114,660 Non-cancellable operating lease commitments 7.4.1 50,339 Non-cancellable finance lease commitments 7.4.2 5,893 Capital commitments 7.4.3 706

Department of Primary Industries and Regional Development Annual Report 2018 Page 96

Notes to the financial statements for the year ended 30 June 2018

7.1 Borrowings 2018 $'000 Current Borrowings from Western Australian Treasury Corporation (a) 6,598 (b) Finance lease 2,500

9,098 Non-current Borrowings from Western Australian Treasury Corporation (a) 14,217 Finance lease (b) 3,393 17,610

26,708 (a) ‘Borrowings’ refer to interest bearing liabilities mainly raised from public borrowings raised through the Western Australian Treasury Corporation (WATC), finance leases and other interest bearing arrangements. Borrowings are classified as financial instruments. All interest bearing borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. The measurement basis subsequent to initial recognition depends on whether the department has categorised its interest bearing liabilities as either ‘financial liabilities designated at fair value through profit or loss’, or financial liabilities at ‘amortised cost’. The classification depends on the nature and purpose of the interest bearing liabilities. The department determines the classification of its interest bearing liabilities at initial recognition.

(b) The Department of Primary Industries and Regional Development, on behalf of the State, has entered into a lease agreement with the Baiyungu Aboriginal Corporation. The lease is in relation to the Royalties for Regions-funded Coral Bay Services Workers’ Accommodation project. The lease is a 10-year lease that expires in 2020. At the end of the lease, the workers’ accommodation will be transferred to the Baiyungu Aboriginal Corporation unless advised otherwise within three months from lease expiry. The value of the building has been recognised as a prepayment and will be expensed annually up the lease expiry date.

Finance lease rights and obligations are initially recognised, at the commencement of the lease term, as assets and liabilities equal in amount to the fair value of the leased item or, if lower, the present value of the minimum lease payments, determined at the inception of the lease.

Department of Primary Industries and Regional Development Annual Report 2018 Page 97

Notes to the financial statements for the year ended 30 June 2018

7.2 Finance costs 2018 $'000 Interest expense 435 WATC borrowing charges 1,457 1,892

‘Finance cost’ includes costs incurred in connection with the borrowing of funds and includes interest on bank overdrafts and short-term and long-term borrowings, amortisation of discounts or premiums relating to borrowings, interest component of finance lease repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time.

7.3 Cash and cash equivalents For the purpose of the Statement of Cash Flows, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash on hand and short-term deposits.

7.3.1 Reconciliation of cash 2018 Cash and cash equivalents $'000 Reconciliation of cash Cash advances 28 Cash at bank 11,471 Cash and cash equivalents 11,499

Department of Primary Industries and Regional Development Annual Report 2018 Page 98

Notes to the financial statements for the year ended 30 June 2018

7.3.2 Restricted cash and cash equivalents 2018 $'000 Current Restricted cash and cash equivalents Royalties for Regions Fund (a) 51,220 Potato Marketing Corporation 2 Funds for capital purposes (b) 2,633 Colocation Fund 77 Recurrent grants 564 Trust Account 516

Special purpose accounts (c) Agriculture Research Grants Account No. 1 (non-interest bearing) 20,605 Agriculture Research Grants Account No. 2 4,008 Commonwealth Agriculture Activity Grants (non-interest bearing) 3,839 Plant Research and Development 5,548 Cattle Industry Funded Scheme 5,747 Declared Pest Account 2,631 Land Conservation Districts Fund 78 Grain, Seeds and Hay Industry Funded Scheme 9,595 Sheep and Goats Industry Funded Scheme 2,014 Fisheries Research and Development 1,516 Recreational Fishing Account 2,500 Fisheries Adjustment Schemes Trust Account 522 Total current 113,615

Non-current Accrued salaries suspense account (d) 1,045 Total non-current 1,045

Total restricted cash and cash equivalents 114,660

(a) Unspent funds are committed to projects and programs in WA regional areas. (b) Funds for capital purposes are restricted by the fact that these amounts are specifically appropriated by Treasury for capital spend. (c) Receipts and disbursements are disclosed in note 9.7 in accordance with Treasurer’s Instruction 1103(15). (d) Funds held in the suspense account are to be used only for the purpose of meeting the 27th pay in a financial year that occurs every 11 years.

Department of Primary Industries and Regional Development Annual Report 2018 Page 99

Notes to the financial statements for the year ended 30 June 2018

7.3.3 Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities

Cash at the end of the financial year as shown in the Statement of cash flows is reconciled to the related items in the Statement of financial position as follows: 2018 $'000 Cash and cash equivalents (note 7.3.1) 11,499 Restricted cash and cash equivalents: current (note 7.3.2) 113,615 Restricted cash and cash equivalents: non-current (note 7.3.2) 1,045 126,159

2018 Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities $'000 Net cost of services (352,515)

Non-cash items Loss on disposal of non-current assets (note 4.6) 315 Depreciation and amortisation expense (notes 5.1.1, 5.2.1) 16,394 Doubtful debts expense (note 3.3) 85 Impairments (note 3.3) 210 Revaluation decrement (note 3.3) 27,338 Resources received free of charge (note 4.1) 1,782 Other non-cash items 76 Share of net (profit)/loss in joint ventures using equity method (note 6.6.1) 2,047

(Increase)/decrease in assets Biological assets 287 Inventories (484) Receivables (1,031) Other assets 1,529

Increase/(decrease) in liabilities Payables 5,183 Provisions (994) Other liabilities 1,048

Net cash used in operating activities (298,730)

Department of Primary Industries and Regional Development Annual Report 2018 Page 100

Notes to the financial statements for the year ended 30 June 2018

7.4 Commitments

7.4.1 Non-cancellable operating lease commitments 2018 $'000 Commitments for minimum lease payments are payable as follows: The commitments below are inclusive of GST where relevant.

Within 1 year 13,038 Later than 1 year and not later than 5 years 25,785 Later than 5 years 11,516 50,339

Operating leases are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased properties. The property leases are non-cancellable leases with five-year terms, with rents payable monthly in advance. Contingent rental provisions within the lease agreements require that the minimum lease payments shall be increased by the lower of CPI or 4% per annum. An option exists to renew the leases at the end of their five-year terms for an additional term of five years. A contractual arrangement exists between State Fleet and the department for the lease of vehicles based on both a vehicle kilometre specification and vehicle lease terms. Lease payments are made on a monthly basis. The department is responsible for registration, insurance and servicing of leased vehicles in line with the manufacturer's recommendations, as well as the cost of refurbishment on return. State Fleet carries the residual risk on the sale of the vehicle.

Department of Primary Industries and Regional Development Annual Report 2018 Page 101

Notes to the financial statements for the year ended 30 June 2018

7.4 Commitments (continued)

7.4.2 Non-cancellable finance lease commitments 2018 $'000 Finance lease commitments Minimum lease payments commitments in relation to the finance lease payable as follows: Within 1 year 2,811 Later than 1 year and not later than 5 years 3,580 Minimum finance lease payments 6,391 Less future finance charges (498) Present value of finance lease liabilities 5,893

The present value of finance leases payable is as follows: Within 1 year 2,500 Later than 1 year and not later than 5 years 3,393 Present value of finance lease liabilities 5,893

Included in the financial statements as follows: Current (Note 7.1 'Borrowings') 2,500 Non-current (Note 7.1 'Borrowings') 3,393 5,893 The department, on behalf of the State, has entered into a lease agreement with the Baiyungu Aboriginal Corporation. The lease is in relation to the Royalties for Regions-funded Coral Bay Services Workers’ Accommodation project. The lease is a 10-year lease that expires in 2020. See note 6.3, ‘Other assets’ and Note 7.1 ‘Borrowings’.

7.4.3 Capital commitments 2018 $'000 The commitments below are inclusive of GST where relevant.

Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows: Within 1 year 512 Later than 1 year 194 706

Department of Primary Industries and Regional Development Annual Report 2018 Page 102

Notes to the financial statements for the year ended 30 June 2018

8 Risks and contingencies This note sets out the key risk management policies and measurement techniques of the department. Notes Financial risk management 8.1 Contingent assets and liabilities 8.2 Fair value measurements 8.3

8.1 Financial risk management Financial instruments held by the department are cash and cash equivalents, restricted cash and cash equivalents, loans and receivables, available for sale financial assets, payables, Western Australian Treasury Corporation (WATC)/bank borrowings, finance leases, and Treasurer’s advances. The department has limited exposure to financial risks. The department's overall risk management program focuses on managing the risks identified below.

(a) Financial risk management objectives and policies

Credit risk Credit risk arises when there is the possibility of the department’s receivables defaulting on their contractual obligations resulting in financial loss to the department. The maximum exposure to credit risk at the end of the reporting period in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any allowance for impairment as shown at note 8.1(c) Financial instrument disclosures’ and note 6.1 'Receivables'. Credit risk associated with the department's financial assets is minimal because the main receivable is the amount receivable for services (holding accounts). For receivables other than government, the department trades only with recognised, creditworthy third parties. The department has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the department's exposure to bad debts is minimal. At the end of the reporting period there was no significant concentration of credit risk.

Liquidity risk Liquidity risk arises when the department is unable to meet its financial obligations as they fall due. The department is exposed to liquidity risk through its trading in the normal course of business. The department has appropriate procedures to manage cash flows, including drawdown of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Department of Primary Industries and Regional Development Annual Report 2018 Page 103

Notes to the financial statements for the year ended 30 June 2018

8.1 Financial risk management (continued)

Market risk Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the department's income or the value of its holdings of financial instruments. The department does trade in foreign currency but values are not considered material. The department is not materially exposed to other price risks (for example, equity securities or commodity prices changes).The department’s exposure to market risk for changes in interest rates relates primarily to the long-term debt obligations. All borrowings are due to the WATC and are repayable at fixed rates with varying maturities. Other than as detailed in the interest rate sensitivity analysis table at Note 8.1(d), the department is not exposed to interest rate risk because the majority of cash and cash equivalents and restricted cash are non-interest bearing and it has no borrowings other than the Treasurer’s advance (non- interest bearing), WATC borrowings and finance leases (fixed interest rate).

(b) Categories of financial instruments The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are: 2018 $'000 Financial assets Cash and cash equivalents 11,499 Restricted cash and cash equivalents 114,660 Receivables 5,604 Lease prepayments 5,441 Available for sale financial assets 55 Loans and advances 25,270 Amounts receivable for services (a) 126,039 288,568

Financial liabilities Payables 19,112 Finance lease 5,893 Borrowings 20,815 45,820 (a) Service appropriations fund the net cost of services delivered. Appropriation revenue comprises a cash component and a receivable (asset). The receivable (Holding Account) comprises the budgeted depreciation expense for the year and any agreed increase in leave liabilities during the year.

Department of Primary Industries and Regional Development Annual Report 2018 Page 104

Notes to the financial statements for the year ended 30 June 2018

8.1 Financial risk management (continued)

(c) Ageing analysis of financial assets The following details the department's maximum exposure to credit risk and the ageing analysis of financial assets. The department's maximum exposure to credit risk at the end of the reporting period is the carrying amount of financial assets. Disclosed below is the ageing of financial assets that are past due but not impaired and impaired financial assets. It is based on information provided to senior management of the department. The department does not hold any collateral as security or other credit enhancements relating to the financial assets it holds.

Ageing analysis of financial assets Carrying Not past Up to 1 1 to 3 3 months 1 to 5 More than Impaired amount due and month months to 1 year years 5 years financial not assets impaired $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 2018 Financial assets Cash and cash equivalents 11,499 11,499 ------Restricted cash and cash 114,660 114,660 ------equivalents Receivables (a) 5,604 2,559 989 511 1,709 42 - (206) Lease prepayments 5,441 - 202 403 1,814 3,022 - - Available for sale financial 55 - - - - 55 - - assets Loans and advances 25,270 - - - 6,599 18,671 - - Amounts receivable for 126,039 126,039 ------services 288,568 254,757 1,191 914 10,122 21,790 - (206)

(a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).

Department of Primary Industries and Regional Development Annual Report 2018 Page 105

Notes to the financial statements for the year ended 30 June 2018

8.1 Financial risk management (continued)

(d) Liquidity risk and interest rate exposure The following table details the department’s interest rate exposure and the contractual maturity analysis of financial assets and financial liabilities. The maturity analysis section includes interest and principal cash flows. The interest rate exposure section analyses only the carrying amounts of each item.

Interest rate exposure and maturity analysis of financial assets and financial liabilities Interest rate exposure Maturity dates Weighted average Fixed Variable Non- More Carrying Nominal Up to 1 1 to 3 3 months 1 to 5 effective interest interest interest than 5 amount amount month months to 1 year years interest rate rate bearing years rate % $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 2018 Financial assets Cash and cash 1.97 11,499 - 1,521 9,978 11,499 11,499 - - - - equivalents Restricted cash and 1.97 114,660 - 34,325 80,335 114,660 114,660 - - - - cash equivalents Receivables - 5,604 - - 5,604 5,604 3,548 511 1,545 - - Lease prepayments 5.09 5,441 5,441 - - 6,391 234 468 2,108 3,581 - Available for sale - 55 - - 55 55 - - - 55 - financial assets Loans and advances 5.27 25,270 25,270 - - 28,851 - - 6,701 22,150 - Amounts receivable - 126,039 - - 126,039 126,039 - - - 4,897 121,142 for services 288,568 30,711 35,846 222,011 293,099 129,941 979 10,354 30,683 121,142

Financial liabilities Payables - 19,112 - - 19,112 19,112 19,112 - - - - Finance lease 6.28 5,893 5,893 - - 6,391 234 468 2,108 3,581 - liabilities WATC borrowings 5.31 20,815 20,815 - - 22,783 - - 6,701 16,082 - 45,820 26,708 - 19,112 48,286 19,346 468 8,809 19,663 -

Department of Primary Industries and Regional Development Annual Report 2018 Page 106

Notes to the financial statements for the year ended 30 June 2018

8.1 Financial risk management (continued)

(e) Interest rate sensitivity analysis The department is exposed to interest rate risk on its restricted cash $34.3 million and cash equivalents $1.5 million which both earn interest at a variable rate (note 8.1 (d)). A 1% change in interest rates at reporting period end would result in an increase/decrease in profit or loss and equity of $358,000 depending upon whether interest rates increased/decreased. It is assumed that the change in interest rates is held constant throughout the reporting period.

Interest rate sensitivity analysis -100 basis points +100 basis points Carrying amount Surplus Equity Surplus Equity $'000 $'000 $'000 $'000 $'000 2018 Financial assets Cash and cash equivalents 1,521 (15) (15) 15 15 Restricted cash and cash equivalents 34,325 (343) (343) 343 343

Total increase/(decrease) (358) (358) 358 358

Department of Primary Industries and Regional Development Annual Report 2018 Page 107

Notes to the financial statements for the year ended 30 June 2018

8.2 Contingent assets and liabilities The following contingent assets and liabilities are additional to the assets and liabilities included in the financial statements. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

8.2.1 Contingent assets There are currently no contingent assets.

8.2.2 Contingent liabilities

Litigation in progress The department has three pending litigation claims that may affect the financial position to the value of $2,509,166 pertaining to cases relating to a death when a fishing vessel sunk, a prosecution for taking excess rock lobster and also an alleged incorrect advice/breach of contract that allegedly led to farm losses. These are currently with the State Solicitor's Office, with the exception of the death when a fishing vessel sunk. It is uncertain when the cases will be finalised. RiskCover is providing full indemnity in the event that the department is found to be liable.

Contaminated sites Under the Contaminated Sites Act 2003 (the Act), the department is required to report suspected contaminated sites to the Department of Water and Environmental Regulation (DWER). In accordance with the Act, after specific site investigations, reports are submitted to DWER to classify these sites. DWER classifies these sites on the basis of the risk to human health and the environment. The department currently has 15 sites registered with DWER as possibly contaminated and one site registered as contaminated. Where a risk is identified, the department may have a responsibility for further investigation and possible site remediation, if the identified risk cannot be managed. The department adopts a risk management approach which sees properties retained and managed, rather than proceeding with site remediation. Currently the department is not planning or been directed by DWER to remediate any specific sites. However, it is envisaged in the future some surplus ‘high value’ sites will require remediation to DWER standards to allow the properties to proceed to sale through the Department of Planning, Lands and Heritage (DPLH). This future liability when known will be covered through the DPLH’s sale process. The department, in consultation with the relevant authorities, is in the process of finalising a re-write of the original (1998) Preliminary Site Investigation report and the Site Management Plan in accordance with the ‘Assessment and management of contaminated sites (Contaminated Sites guidelines) 2014’ under provisions of the Contaminated Sites Act 2003.

Negotiations in progress There are currently no negotiations in progress.

Department of Primary Industries and Regional Development Annual Report 2018 Page 108

Notes to the financial statements for the year ended 30 June 2018

8.3 Fair value measurements Fair value at end of Level 1 Level 2 Level 3 period 2018 $'000 $'000 $'000 $'000 Land (note 5.1) - 15,011 91,211 106,222 Buildings (note 5.1) - 5,591 91,543 97,134 - 20,602 182,754 203,356

Transfers into and transfers out of the fair value hierarchy level are recognised at the end of the financial reporting period. There were no transfers between Levels 1, 2 or 3 during the current period.

Valuation techniques to derive Level 2 fair values Level 2 fair values of land and buildings are derived using the market approach. Market evidence of sales prices of comparable land and buildings in close proximity is used to determine price per square metre. Non-current assets held for distribution to owners have been written down to fair value less costs to sell. Fair value has been determined by reference to market evidence of sales prices of comparable assets.

Fair value measurement using significant observable inputs (Level 3) The following table presents the changes in the fair value of assets measured using significant unobservable inputs (Level 3) for recurring fair value measurements: Held for sale Land Buildings 2018 $'000 $'000 $'000

Fair value at start of period - - - Contribution from owner 75,156 40,080 98,573 Revaluation increments/(decrements) recognised in Other comprehensive income - (20,888) (4,395) Transfers (from/(to) Level 2) - 8 (417) Other transfers (74,395) 72,011 2,384 Disposals (761) - (132) Depreciation expense - - (4,470) Fair value at end of period - 91,211 91,543

Department of Primary Industries and Regional Development Annual Report 2018 Page 109

Notes to the financial statements for the year ended 30 June 2018

8.3 Fair value measurements (continued)

Valuation processes There were no changes in valuation techniques during the period. Transfers in and out of a fair value level are recognised on the date of the event or change in circumstances that caused the transfer. Transfers are generally limited to assets newly classified as non-current assets held for distribution as Treasurer’s Instructions require valuations of land and buildings to be categorised within Level 3 where the valuations will utilise significant Level 3 inputs on a recurring basis.

Land (Level 3 fair values) Fair value for restricted use land is based on comparison with market evidence for land with low level utility (high restricted use land). The relevant comparators of land with low level utility is selected by Landgate and represents the application of a significant Level 3 input in this valuation methodology. The fair value measurement is sensitive to values of comparator land, with higher values of comparator land correlating with higher estimated fair values of land.

Buildings (Level 3 fair values) Fair value for existing use specialised buildings is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Depreciated replacement cost is the current replacement cost of an asset less accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired economic benefit, or obsolescence, and optimisation (where applicable) of the asset. Current replacement cost is generally determined by reference to the market observable replacement cost of a substitute asset of comparable utility and the gross project size specifications. The Level 3 input used in the valuation process is estimated by Landgate. The Level 3 input is based upon the estimated consumed economic benefit/obsolescence of the asset concerned. The fair value measurement is sensitive to the estimate of consumption/obsolescence, with higher values of the estimate correlating with lower estimated fair values of buildings and infrastructure. Basis of valuation In the absence of market-based evidence, due to the specialised nature of some non-financial assets, these assets are valued at Level 3 of the fair value hierarchy on an existing use basis. The existing use basis recognises that restrictions or limitations have been placed on their use and disposal when they are not determined to be surplus to requirements. These restrictions are imposed by virtue of the assets being held to deliver a specific community service.

Amendments to AASB 136 Mandatory application of AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities has no financial impact for the department as the department is classified as not-for-profit and regularly revalues specialised infrastructure, property, plant and equipment assets. Therefore, fair value the recoverable amount of such assets is expected to be materially the same as fair value.

Department of Primary Industries and Regional Development Annual Report 2018 Page 110

Notes to the financial statements for the year ended 30 June 2018

9 Other disclosures This section includes additional material disclosures required by accounting standards or other pronouncements, for the understanding of this financial report.

Notes

Events occurring after the end of the reporting period 9.1 Future impact of Australian standards issued not yet operative 9.2 Key management personnel 9.3 Related party transactions 9.4 Related bodies 9.5 Affiliated bodies 9.6 Special purpose accounts 9.7 Remuneration of auditors 9.8 Services provided free of charge 9.9 Non-current assets classified as held for sale 9.10 Equity 9.11 Supplementary financial information 9.12 Indian Ocean Territories Service Level Agreement 9.13 Explanatory statement 9.14

9.1 Events occurring after the end of the reporting period There were no other events that occurred after the end of the reporting period that would materially affect the financial statements or disclosures.

9.2 Future impact of Australian Accounting Standards not yet operative The department cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements or by an exemption from TI 1101. Where applicable, the department plans to apply the following Australian Accounting Standards from their application date.

Department of Primary Industries and Regional Development Annual Report 2018 Page 111

Notes to the financial statements for the year ended 30 June 2018

9.2 Future impact of Australian Accounting Standards not yet operative (continued)

Operative for reporting periods beginning on/after

AASB 9 Financial Instruments 1 Jan 2018 This Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments. The department has assessed that recognition of expected credit losses will increase the amount of impairment losses recognised as Other expenses in the Statement of Comprehensive Income. This assessment would not have significant adverse impact on the department’s Surplus/(Deficit) for the period. AASB 15 Revenue from Contracts with Customers 1 Jan 2019 This Standard establishes the principles that the department shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. The mandatory application date of this Standard is currently 1 January 2019 after being amended by AASB 2016-7. The department's income is principally derived from appropriations which will be measured under AASB 1058 and will be unaffected by this change. However, the department has not yet determined the potential impact of the Standard on ‘User charges and fees’ and ‘Sales’ revenue. In broad terms, it is anticipated that the terms and conditions attached to these revenues will defer revenue recognition until the department has discharged its performance obligations. AASB 16 Leases 1 Jan 2019 This Standard introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. While the impact of AASB 16 has not yet been quantified, the department currently has commitments for $50.3 million worth of non-cancellable operating leases which will mostly be brought onto the Statement of Financial Position. Interest and amortisation expense will increase and rental expense will decrease.

AASB 1058 Income of Not-for-Profit Entities 1 Jan 2019 This Standard clarifies and simplifies the income recognition requirements that apply to not-for-profit (NFP) entities, more closely reflecting the economic reality of NFP entity transactions that are not contracts with customers. Timing of income recognition is dependent on whether such a transaction gives rise to a liability or other performance obligation (a promise to transfer a good or service), or a contribution by owners, related to an asset (such as cash or another asset) received by a department. The department anticipates that the application will not materially impact appropriations or untied grant revenues.

Department of Primary Industries and Regional Development Annual Report 2018 Page 112

Notes to the financial statements for the year ended 30 June 2018

9.2 Future impact of Australian Accounting Standards not yet operative (continued)

Operative for reporting periods beginning on/after

AASB 1059 Service Concession Arrangements: Grantors 1 Jan 2019 This Standard addresses the accounting for a service concession arrangement (a type of public private partnership) by a grantor that is a public sector department by prescribing the accounting for the arrangement from the grantor’s perspective. Timing and measurement for the recognition of a specific asset class occurs on commencement of the arrangement and the accounting for associated liabilities is determined by whether the grantee is paid by the grantor or users of the public service provided. The department has not identified any public private partnerships within scope of the Standard.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 1 Jan 2018 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Int 2, 5, 10, 12, 19 & 127] This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 9 in December 2010. The mandatory application date of this Standard has been amended by AASB 2012-6 and AASB 2014-1 to 1 January 2018. Other than the exposures to AASB 9 noted above, the department is only insignificantly impacted by the application of the Standard.

AASB 2014-1 Amendments to Australian Accounting Standards 1 Jan 2018 Part E of this Standard makes amendments to AASB 9 and consequential amendments to other Standards. These changes have no impact as Appendix E has been superseded and the department was not permitted to early adopt AASB 9.

AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 1 Jan 2018 This Standard gives effect to the consequential amendments to Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 15. The mandatory application date of this Standard has been amended by AASB 2015-8 to 1 January 2018. The department has not yet determined the application or the potential impact of the Standard.

AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) 1 Jan 2018 This Standard gives effect to the consequential amendments to Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 9 (December 2014). The department has not yet determined the application or the potential impact of the Standard.

Department of Primary Industries and Regional Development Annual Report 2018 Page 113

Notes to the financial statements for the year ended 30 June 2018

9.2 Future impact of Australian Accounting Standards not yet operative (continued)

Operative for reporting periods beginning on/after

AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15 1 Jan 2018 This Standard amends the mandatory application date of AASB 15 to 1 January 2018 (instead of 1 January 2017). It also defers the consequential amendments that were originally set out in AASB 2014-5. There is no financial impact arising from this Standard.

AASB 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15 1 Jan 2018 This Standard clarifies identifying performance obligations, principal versus agent considerations, timing of recognising revenue from granting a licence, and, provides further transitional provisions to AASB15. The department has not yet determined the application or the potential impact when the deferred AASB 15 becomes effective from 1 January 2019.

AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities 1 Jan 2018

This Standard defers, for not-for-profit entities, the mandatory application date of AASB 15 to 1 January 2019, and the consequential amendments that were originally set out in AASB 2014-5. There is no financial impact arising from this standard.

AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for 1 Jan 2019 Not-for-Profit Entities This Standard inserts Australian requirements and authoritative implementation guidance for not-for- profit entities into AASB 9 and AASB 15. This guidance assists not-for-profit entities in applying those Standards to particular transactions and other events. There is no financial impact.

Department of Primary Industries and Regional Development Annual Report 2018 Page 114

Notes to the financial statements for the year ended 30 June 2018

9.3 Key management personnel The department has determined that key management personnel include Cabinet Ministers and senior officers of the department. However, the department is not obligated to reimburse for the compensation of Ministers and therefore no disclosure is required. The disclosures in relation to Ministers’ compensation may be found in the Annual Report on State Finances.

Compensation band ($) 2018 200,001 – 210,000 1 220,001 – 230,000 1 260,001 – 270,000 1 380,001 – 390,000 1 390,001 – 400,000 1

2018 $'000 Short-term employee benefits 1,175 Post-employment benefits 155 Other long-term benefits 137 Termination benefits - Total compensation of senior officers 1,467

9.4 Related party transactions The department is a wholly owned and controlled entity of the State of Western Australia. In conducting its activities, the department is required to pay various taxes and levies based on the standard terms and conditions that apply to all tax and levy payers to the State and entities related to the State. Related parties of the department include:  all Ministers and their close family members, and their controlled or jointly controlled entities  all senior officers and their close family members, and their controlled or jointly controlled entities  other departments and statutory authorities, including their related bodies, that are included in the whole of government consolidated financial statements  associates and joint ventures of an entity that are included in the whole of Government consolidated financial statements, and the  Government Employees Superannuation Board (GESB).

Department of Primary Industries and Regional Development Annual Report 2018 Page 115

Notes to the financial statements for the year ended 30 June 2018

9.4 Related party transactions (continued)

Significant transactions with government-related entities

 Superannuation payments to GESB (note 3.1.1)  Staffing housing costs to the Department of Communities (note 3.1.1)  Grants and subsidies paid (note 3.2) includes: Forest Products Commission $4,520,000 Department of Communities $2,000,000 Department of Education $1,195,930 Department of Water and Environmental Regulation $1,125,000 Department of State Development $114,338 Department of Health $82,000  Supplies and services (note 3.3) includes: Department of Finance $3,806,586 Department of Water and Environmental Regulation $3,624,779 Department of Finance State Fleet $3,056,199 RiskCover $1,353,172 Synergy $1,044,220 Office of the Auditor General $896,946 Department of Communities $593,489 Department of Biodiversity, Conservation and Attractions $372,310 Department of Jobs, Tourism, Science and Innovation $263,138 Department of Transport $238,668 Water Corporation $224,918 Department of Mines, Industry Regulation and Safety $206,899 Horizon Power $129,023 Landcorp $63,636  Accommodation lease payments (note 3.3)  Other expenditures (note 3.3) includes: RiskCover $937,986

Department of Primary Industries and Regional Development Annual Report 2018 Page 116

Notes to the financial statements for the year ended 30 June 2018

9.4 Related party transactions (continued)

Significant transactions with government-related entities

 Service appropriation (note 4.1)  Resources received free of charge (note 4.1)  Royalties for Regions Fund (note 4.1)  User charges and fees (note 4.2) includes: Department of Planning, Lands and Heritage $512,000 Rural Business Development Corporation $559,830 Agricultural Produce Commission $100,872  Other revenue (note 4.5) includes: Department of Treasury $697,064 Mid West Development Commission $270,923 Department of Mines, Industry Regulation and Safety $100,000 RiskCover $194,623 Forest Products Commission $175,341 Goldfields-Esperance Development Commission $81,007 Midwest Ports $80,923 Department of Biodiversity, Conservation and Attractions $77,791 Rural Business Development Corporation $68,861  Services provided free of charge (note 9.9)  Capital appropriations (note 9.11) The department had no material related party transaction with Ministers/senior officers or their close family members or their controlled (or jointly controlled) entities for disclosure.

Department of Primary Industries and Regional Development Annual Report 2018 Page 117

Notes to the financial statements for the year ended 30 June 2018

9.5 Related bodies The following industry funding schemes are deemed to be related bodies by the Treasurer:  The Cattle Industry Funded Scheme  The Grains, Seeds and Hay Industry Funded Scheme  The Sheep and Goat Industry Funded Scheme The funds of the three schemes are reported as restricted cash and cash equivalents (note 7.3.2) and movements in Special Purpose Accounts (note 9.7). The transactions and results of these related bodies have been included in the financial statements.

9.6 Affiliated bodies The Community Resource Centre Network is an affiliated body that received administrative support through contracts for service for $9.2 million and grant funding of $2 million from the department. The Community Resource Centres are not subject to operational control by the department.

Department of Primary Industries and Regional Development Annual Report 2018 Page 118

Notes to the financial statements for the year ended 30 June 2018

9.7 Special purpose accounts 2018 $'000 Special purpose accounts Agriculture Research Grants Account No. 1 (non-interest bearing) The purpose of the fund is to receive and disperse funds from industry and other organisations in support of agricultural research projects. Balance at start of period 16,887 Receipts 27,469 Payments (23,751) Balance at end of period 20,605

Agriculture Research Grants Account No. 2 The purpose of the fund is to receive and disperse funds from industry and other organisations in support of agricultural research projects. Balance at start of period 3,151 Receipts 2,370 Payments (1,513) Balance at end of period 4,008

Commonwealth Agriculture Activity Grants (non-interest bearing) The purpose of the fund is to receive and disperse funds to conduct Commonwealth-funded activities. Balance at start of period 4,552 Receipts 2,952 Payments (3,665) Balance at end of period 3,839

Plant Research and Development The purpose of the fund is to receive and disperse funds to conduct plant research and development in Western Australia. Balance at start of period 11,391 Receipts 1,249 Payments (7,092) Balance at end of period 5,548

Department of Primary Industries and Regional Development Annual Report 2018 Page 119

Notes to the financial statements for the year ended 30 June 2018

9.7 Special purpose accounts (continued) 2018 $'000 Cattle Industry Funded Scheme The purpose of the fund is to receive and disperse funds from the cattle industry to enable industry to self-determine and self- fund appropriate responses to serious pest and disease incursions which predominantly impact on the industry sector and which are not otherwise covered under existing arrangements at the national level. Balance at start of period 5,578 Receipts 358 Payments (189) Balance at end of period 5,747

Declared Pest Account The purpose of the fund is to receive and disperse funds collected to carry out measures to control declared pests on and in relation to areas for which the rates were collected. Balance at start of period 2,794 Receipts 3,496 Payments (3,659) Balance at end of period 2,631

Land Conservation Districts Fund The purpose of the fund is to promote soil conservation through research and implementation of soil and conservation measures and practices. Balance at start of period 144 Receipts 94 Payments (160) Balance at end of period 78

Grain, Seeds and Hay Industry Funded Scheme The purpose of the fund is to receive and disperse funds from the grain, seeds and hay industry to enable the industry to self- determine and self-fund appropriate responses to serious pest and disease incursions which predominantly impact on the industry sector and which are not otherwise covered under existing arrangements at the national level. Balance at start of period 9,756 Receipts 4,052 Payments (4,213) Balance at end of period 9,595

Department of Primary Industries and Regional Development Annual Report 2018 Page 120

Notes to the financial statements for the year ended 30 June 2018

9.7 Special purpose accounts (continued) 2018 $'000 Sheep and Goats Industry Funded Scheme The purpose of the fund is to receive and disperse funds from the sheep and goats industry to enable the industry to self- determine and self-fund appropriate responses to serious pest and disease incursions which predominantly impact on the industry sector and which are not otherwise covered under existing arrangements at the national level. Balance at start of period 2,014 Receipts 805 Payments (805) Balance at end of period 2,014

Fisheries Research and Development Account The Fisheries Research and Development Account, which was established under the Fisheries Act 1905 (repealed), was continued under the Fish Resources Management Act 1994 (FRMA 1994). The purpose of the Account is to hold funds in accordance with section 238 of the FRMA 1994 which may be used and applied by the Minister in such manner and in such proportion as the Minister thinks fit for all or any of the purposes prescribed by section 238(5) of the FRMA 1994 and section 37(3), 41 and 55(4) and (5) of the Pearling Act 1990. All revenue and expenditure relating to commercial fishing, fish and fish habitat protection, pearling and aquaculture services is transacted through this account. The AFMA Account and Fisheries Research and Development Corporation Account no longer exist in 2011/12. The balances of the two funds were transferred to Fisheries Research and Development Account in 2011/12.

Balance at start of period 1,060 Receipts Contribution from Consolidated Account 39,767 Royalties for Regions 410 Fisheries Access Fees 29,899 Grants and Contributions 1,022 Other Receipts 6,328 Interest 110 Payments Contributions to Fisheries WA operations (77,080) Balance at end of period 1,516

Department of Primary Industries and Regional Development Annual Report 2018 Page 121

Notes to the financial statements for the year ended 30 June 2018

9.7 Special purpose accounts (continued) 2018 $'000 Recreational Fishing Account The Recreational Fishing Account is established under the FRMA 1994. The purpose of the account is to hold funds in accordance with section 239 of the FRMA 1994 which may be applied by the Minister for all or any of the purposes prescribed by section 239(4) of the FRMA 1994. The main revenue sources include contributions from the Consolidated Account and revenue from recreational fishing licences. The funds support activity relating to recreational fishing. Balance at start of period 2,500 Receipts Contribution from Consolidated Account 9,340 Recreational Fishing Licences 8,463 Payments Expenditure on recreational fishing related activities (17,803) Balance at end of period 2,500

Fisheries Adjustment Schemes Trust Account The purpose of this account is to hold funds in accordance with section 5 of the Fisheries Adjustment Scheme Act 1987 which shall be applied by the Minister for the purposes prescribed by section 6 of that Act. Balance at start of period 551 Receipts Repayments from Industry for Voluntary Fisheries Adjustment Schemes 6,174 Payments Loan repayment, Interests and guarantee fees to WATC for Voluntary Fisheries Adjustment Schemes (6,165) Unit buy back State Scheme (38) Balance at end of period 522

Department of Primary Industries and Regional Development Annual Report 2018 Page 122

Notes to the financial statements for the year ended 30 June 2018

9.8 Remuneration of auditor 2018 Remuneration paid or payable to the Auditor General in respect of the audit for the current financial year is as follows: $'000 Auditing the accounts, financial statements and performance indicators 578 Certifications: Royalties for Regions 158 736 9.9 Services provided free of charge 2018 During the period the following services were provided to other departments free of charge for functions outside the normal operations of the department: $'000 Gascoyne Development Commission 900 Goldfields-Esperance Development Commission 1,466 Great Southern Development Commission 1,342 Kimberley Development Commission 1,334 Mid West Development Commission 1,292 Peel Development Commission 1,763 Pilbara Development Commission 2,305 South West Development Commission 2,721 Wheatbelt Development Commission 1,195 Agricultural Produce Commission (APC) 69 Department of Biodiversity, Conservation and Attractions 55 Department of Finance 2 Department of Fire and Emergency Services 4 Department of Jobs, Tourism, Science and Innovation 8 Department of Local Government, Sport and Cultural Industries 1 Department of Mines, Industry Regulation and Safety 2 Department of Planning, Lands and Heritage 2 Department of Transport 1 Department of Water and Environmental Regulation 9 Housing Authority 1 Landgate 2 Water Corporation 2 Western Australia Police 1 14,477

Department of Primary Industries and Regional Development Annual Report 2018 Page 123

Notes to the financial statements for the year ended 30 June 2018

9.10 Non-current assets classified as assets held for sale 2018 $'000 Assets classified as held for distribution to owners Land and buildings Current - Non-current - -

Opening balance - Contribution from owner 75,181 Revaluation of land and buildings distributed - Assets reclassified back to property, plant and equipment (74,420) Total assets classified as held for distribution to owners 761 Less assets distributed (761) Closing balance -

Assets held for distribution to owners are recognised at the lower of carrying amount and fair value less costs to sell, and are disclosed separately from other assets in the Statement of Financial Position. Assets classified as held for distribution to owners are not depreciated or amortised. All Crown land holdings are vested in the department by the government. The Department of Planning, Lands and Heritage (DPLH) is the only department with the power to sell Crown land. The department transfers the Crown land and any attached buildings to DPLH when the land becomes available for sale. Mandatory application of AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-2016 Cycle requires disclosure changes and no financial impact. The department has no interests in other entities that are classified as held for sale, held for distribution to owners in their capacity as owners or discontinued operations in accordance with AASB 5.

Department of Primary Industries and Regional Development Annual Report 2018 Page 124

Notes to the financial statements for the year ended 30 June 2018

9.11 Equity The Western Australian Government holds the equity interest in the department on behalf of the community. Equity represents the residual interest in the net assets of the department.

2018 Contributed equity $'000 Balance at start of period - Transfer of net assets from other departments 524,282 Capital appropriation (a) 1,085 Other contributions by owners Royalties for Regions Fund: Regional Infrastructure and Headworks Account 4,121 Distributions to owners (b) Transfer of assets to other departments: Land held for distribution transferred to the Department of Planning, Lands Heritage (761) Balance at end of period 528,727

(a) Capital contributions (appropriations) and non-discretionary (non-reciprocal) transfers of net assets between State Government departments have been designated as contributions by owners in Treasurer’s Instruction 955 ‘Contributions by Owners Made to Wholly Owned Public Sector Entities’. (b) Treasurer’s Instruction 955 requires non-reciprocal transfers of net assets to government to be accounted for as distribution to owners in accordance with AASB Interpretation 1038.

2018 Accumulated surplus/(deficit) $'000 Balance at start of period - Result for the period (19,791) Balance at end of period (19,791)

Total equity at end of period 508,936

Department of Primary Industries and Regional Development Annual Report 2018 Page 125

Notes to the financial statements for the year ended 30 June 2018

9.11 Equity (continued)

As of 1 July 2017, the departments of Agriculture and Food, Fisheries and Regional Development amalgamated to establish the Department of Primary Industries and Regional Development.

Net assets transferred in Total net assets received

Department of Department of Department of Department of Regional Fisheries Agriculture and Primary Industries Development Food and Regional Development

$'000 $'000 $'000 $'000

Cash and cash equivalents 45,864 5,520 70,969 122,353

Land and buildings 9,382 46,627 105,135 161,144

Other assets 27,204 79,777 229,120 336,101

Total assets 82,450 131,924 405,224 619,598

Liabilities 9,793 30,426 13,042 53,261

Provisions 3,127 15,895 23,033 42,055

Total liabilities and provisions 12,920 46,321 36,075 95,316

Total contribution by owners 69,530 85,603 369,149 524,282

Department of Primary Industries and Regional Development Annual Report 2018 Page 126

Notes to the financial statements for the year ended 30 June 2018

9.12 Supplementary financial information 2018 $'000 (a) Write-offs Non-current assets During the financial year $60,768 was written off the department's asset register under the authority of: The accountable authority 61 The Minister - 61 Irrecoverable amounts and inventory During the financial year $63,380 was written off in bad debts and inventory under the authority of: The accountable authority 63 The Minister - 63

2018 $'000 (b) Losses through theft, defaults and other causes Losses of public moneys and public and other property through theft or default 70 Amounts recovered from insurance (64) 6

9.13 Indian Ocean Territories Service Level Agreement 2018 $'000 The provision of services to the Indian Ocean Territories are recouped from the Commonwealth Government. Opening balance 91 Receipts 1,360 Payments (1,035) Closing balance 416

Department of Primary Industries and Regional Development Annual Report 2018 Page 127

Notes to the financial statements for the year ended 30 June 2018

9.14 Explanatory statement Significant variations between estimates and actual results for income and expenses as presented in the financial statement titled ‘Summary of consolidated account appropriations and income estimates’ are shown below. Narratives are provided for key major variances, which are generally greater than:  5% and $10.0 million for the Statements of Comprehensive Income and Cash Flows, and  5% and $11.7 million for the Statement of Financial Position.

Department of Primary Industries and Regional Development Annual Report 2018 Page 128

Notes to the financial statements for the year ended 30 June 2018

9.14 Explanatory statement (continued) 2018 2018 Variance Statement of comprehensive income Variance note Original budget Actual Estimate and actual $'000 $'000 $'000 COST OF SERVICES Expenses Employee benefits expense 213,468 205,019 (8,449) Supplies and services 119,553 117,461 (2,092) Depreciation and amortisation expense 25,330 16,394 (8,936) Share of loss in joint venture entities using the equity method - 2,047 2,047 Finance cost 1,646 1,892 246 Accommodation expenses 14,873 8,109 (6,764) Other expenses 1 22,529 50,755 28,226 Grants and subsidies paid 2 104,866 70,879 (33,987) Loss on disposal of non-current assets 234 87 (147) Total cost of service 502,499 472,643 (29,856) Income Revenue User charges and fees 47,887 50,603 2,716 Commonwealth grants and contributions 2,864 5,933 3,069 Non-government grants and subsidies received 3 36,629 25,486 (11,143) Other revenue 4 17,550 38,106 20,556 Total revenue 104,930 120,128 15,198 Total income other than income from State Government 104,930 120,128 15,198 NET COST OF SERVICES 397,569 352,515 (45,054) INCOME FROM STATE GOVERNMENT Service appropriations 184,449 192,955 8,506 Resources received free of charge 2,169 1,782 (387) Royalties for Regions Fund 5 189,258 137,344 (51,914) Other income from State Government - 643 643 TOTAL INCOME FROM STATE GOVERNMENT 375,876 332,724 (43,152)

DEFICIT FOR THE PERIOD (21,693) (19,791) 1,902 Other comprehensive income Items not subsequently reclassified to net cost of service TOTAL OTHER COMPREHENSIVE INCOME - - - TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (21,693) (19,791) 1,902

Department of Primary Industries and Regional Development Annual Report 2018 Page 129

Notes to the financial statements for the year ended 30 June 2018

9.14 Explanatory statement (continued) 2018 2018 Variance Statement of financial position Variance note Original budget Actual Estimate and actual $'000 $'000 $'000 ASSETS Current assets Cash and cash equivalents 9,790 11,499 1,709 Restricted cash and cash equivalents 1 57,139 113,615 56,476 Biological assets 1,231 864 (367) Inventories 718 1,288 570 Receivables 22,742 14,817 (7,925) Amounts receivable for services 4,781 4,897 116 Assets classified as held for distribution to owners 2,749 - (2,749) Other current assets 11,721 7,489 (4,232) Total current assets 110,871 154,469 43,598 Non-current assets Restricted cash and cash equivalents 1,064 1,045 (19) Amounts receivable for services 124,742 121,142 (3,600) Receivables 15,780 14,217 (1,563) Other non-current assets 2 22,646 9,879 (12,767) Investments accounted for using equity method 13,881 12,621 (1,260) Property plant and equipment 285,702 274,730 (10,972) Intangible assets 13,711 14,149 438 Total non-current assets 477,526 447,783 (29,743) TOTAL ASSETS 588,397 602,252 13,855 LIABILITIES Current liabilities Payables 3 3,681 19,112 15,431 Provisions 44,264 38,036 (6,228) Borrowings 9,768 9,098 (670) Other current liabilities 6,968 1,106 (5,862) Total current liabilities 64,681 67,352 2,671 Non-current liabilities Provisions 8,669 8,354 (315) Borrowings 17,579 17,610 31 Total non-current liabilities 26,248 25,964 (284) TOTAL LIABILITIES 90,929 93,316 2,387

Department of Primary Industries and Regional Development Annual Report 2018 Page 130

Notes to the financial statements for the year ended 30 June 2018

9.14 Explanatory statement (continued)

2018 2018 Variance Statement of financial position (continued) Variance note Original budget Actual Estimate and actual $'000 $'000 $'000

NET ASSETS 497,468 508,936 11,468

EQUITY Contributed equity 4 285,134 528,727 243,593 Reserves 5 262,867 - (262,867) Accumulated deficit (50,533) (19,791) 30,742 TOTAL EQUITY 497,468 508,936 11,468

Department of Primary Industries and Regional Development Annual Report 2018 Page 131

Notes to the financial statements for the year ended 30 June 2018

9.14 Explanatory statement (continued)

2018 2018 Variance Statement of cash flows Variance note Original budget Actual Estimate and actual $'000 $'000 $'000 CASH FLOW FROM STATE GOVERNMENT Service appropriation 160,281 168,783 8,502 Capital contributions 1,085 5,206 4,121 Holding Account drawdown 4,355 5,743 1,388 Royalties for Regions Fund 1 208,775 137,344 (71,431) Other income from State Government - 643 643 Net cash provided by State Government 374,496 317,719 (56,777)

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee benefits (213,476) (206,957) 6,519 Supplies and services (113,033) (107,380) 5,653 Accommodation (14,716) (7,725) 6,991 Finance costs (1,252) (1,551) (299) GST payments on purchases (20,847) (20,550) 297 GST payments to taxation authority (5,724) - 5,724 Other payments (23,518) (23,130) 388 Grants and subsidies 2 (104,485) (70,732) 33,753 Receipts User charges and fees 47,887 49,635 1,748 Commonwealth grants and contributions 2,864 5,258 2,394 Interest received 1,616 2,202 586 GST receipts on sales 5,769 5,358 (411) GST receipts from taxation authority 20,687 15,008 (5,679) Other receipts 52,369 61,834 9,465 Net cash used in operating activities (365,859) (298,730) 67,129

Department of Primary Industries and Regional Development Annual Report 2018 Page 132

Notes to the financial statements for the year ended 30 June 2018

9.14 Explanatory statement (continued) 2018 2018 Variance Statement of cash flows (continued) Variance note Original budget Actual Estimate and actual $'000 $'000 $'000 CASH FLOWS FROM INVESTING ACTIVITIES Payments Investment in joint ventures - (3,000) (3,000) Purchase of non-current assets 3 (22,618) (12,330) 10,288 Receipts Proceeds from sale of non-current physical assets 107 228 121 Net cash used in investing activities (22,511) (15,102) 7,409

CASH FLOWS FROM FINANCING ACTIVITIES Payments Repayment of borrowings (4,791) (4,790) 1 Receipts Proceeds from industry 4,790 4,790 - Net cash used in financing activities (1) - 1

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (13,875) 3,887 17,762 Cash and cash equivalents at the beginning of the reporting period 122,272 122,272 - CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 108,397 126,159 17,762

Department of Primary Industries and Regional Development Annual Report 2018 Page 133

Notes to the financial statements for the year ended 30 June 2018

9.14 Explanatory statement (continued) Major variance narratives

Statement of comprehensive income

Variances between estimate and actual

1) Other expenses: $28.2 million, 125% above original budget estimate. This increase reflects the return of unspent RfR funds (from the local government sector) to the Consolidated Account.

2) Grants and subsidies paid: $34.0 million, 32% below original budget estimate. This reduction primarily reflects underspends across the department's RfR-funded projects, following the re-cashflow of project expenditure from 2017/18 and into the out-years, and changes in project scope as approved as part of the government's Mid-year Review and Budget processes. In addition, underspends in Consolidated Account and Externally Funded projects are also contributing to the overall underspend.

3) Non-government grants and subsidies received: $11.1 million, 30% below original budget estimate. This reduction reflects the re-cashflow of project expenditure from 2017/18 and into the out-years following changes in project scope.

4) Other revenue: $20.6 million, 117% above original budget estimate. This increase reflects the return of unspent RfR funds from the local government sector.

5) Royalties for Regions Fund: $51.9 million, 27% below original budget estimate. This reduction primarily reflects underspends across the department's RfR-funded projects, following the re-cashflow of project expenditure from 2017/18 and into the out-years, and changes in project scope as approved as part of the government's Mid-year Review and Budget processes.

Department of Primary Industries and Regional Development Annual Report 2018 Page 134

Notes to the financial statements for the year ended 30 June 2018

9.14 Explanatory statement (continued)

Major variance narratives

Statement of financial position

Variances between estimate and actual

1) Restricted cash and cash equivalents: $56.5 million, 99% above original budget estimate. This is predominately due to increased cash holdings from Royalties for Regions (RfR) funds ($21 million) and increased cash holdings from externally funded projects of $18 million. It is anticipated that these funds will be repositioned into future years to ensure project milestones are completed in accordance with contractual requirements.

2) Other non-current assets: $12.8 million, 56% below original budget estimate. This was predominately due to the overstatement of non-current prepayments in the original 2017/18 Budget, with the transfer of the Doppler Radar Asset to Property, Plant and Equipment. This budget was adjusted during the 2017/18 financial year to reflect this change.

3) Payables: $15.4 million, 419% above original budget estimate. This increase reflects that no allocation was made in the original budget estimate for Accrued Expenses which totalled $9.5 million. In addition, Trade Payables were $4.2 million above the original budget estimate.

4) Contributed Equity: $243.6 million, 85% above original budget estimate. This reflects the transfer of net assets from the amalgamation of the departments of Regional Development, Fisheries and Agriculture and Food as Contributed Equity to the new Department of Primary Industries and Regional Development (see Note 9.11).

5) Reserves: $262.9 million, 100% below original budget estimate. This reflects the transfer of net assets from the amalgamation of the departments of Regional Development, Fisheries and Agriculture and Food as Contributed Equity to the new Department of Primary Industries and Regional Development (DPIRD). Reserves from the now abolished departments are initially taken up as DPIRD's Contributed Equity at the start of the reporting period (see Note 9.11).

Department of Primary Industries and Regional Development Annual Report 2018 Page 135

Notes to the financial statements for the year ended 30 June 2018

9.14 Explanatory statement (continued)

Major variance narratives

Statement of cash flows

Variances between estimate and actual

1) Royalties for Regions Fund: $71.4 million, 34% below the original budget estimate. This reduction primarily reflects underspends across the department's RfR-funded projects, following the re-cashflow of project expenditure from 2017/18 and into the out-years, and changes in project scope as approved as part of the government's Mid-year Review and Budget processes.

2) Grants and subsidies: $33.8 million, 32% below the original budget estimate. This reduction primarily reflects underspends in RfR-funded projects, following the re-cashflow of project expenditure from 2017/18 and into the out-years, and changes in project scope as approved as part of the government's Mid-year Review and Budget processes. Some minor underspends in Consolidated Account and Externally Funded projects are also contributing to the overall underspends.

3) Purchase of non-current assets: $10.3 million, 45% below the original budget estimate. This reduction reflects capital projects not being completed by the end of the financial year. It is anticipated that these funds will be repositioned into future years to ensure project milestones are completed in accordance with contractual requirements.

Department of Primary Industries and Regional Development Annual Report 2018 Page 136

Notes to the financial statements for the year ended 30 June 2018

10 Administered disclosures This section sets out all of the statutory disclosures regarding the financial performance of the department.

Notes

Disclosure of administered income and expenses by service 10.1 Explanatory statement for administered items 10.2 Administered assets and liabilities 10.3

Department of Primary Industries and Regional Development Annual Report 2018 Page 137

Notes to the financial statements for the year ended 30 June 2018

10.1 Disclosure of administered income and expenses by service

Co-operative Commonwealth State NRM Regional Infringements Total loans grants program Reform Fund 2018 2018 2018 2018 2018 2018 Administered items $'000 $'000 $'000 $'000 $'000 $'000

INCOME Interest revenue 1,357 35 - - - 1,392 Other revenue - - 66 - - 66 Royalties for Regions - - 6,207 - - 6,207 Service appropriation - - 1,600 - - 1,600 Regulatory fees and charges - - - - 279 279 TOTAL ADMINISTERED INCOME 1,357 35 7,873 - 279 9,544

EXPENSES Grants and subsidies - 2,167 7,870 3,660 - 13,697 Interest payments 1,033 - - - - 1,033 Supplies and services 365 - 625 - - 990 Transfer payments(a) - - - - 259 259 TOTAL ADMINISTERED EXPENSES 1,398 2,167 8,495 3,660 259 15,979

(a) Transfer payments represent the transfer of non-retainable regulatory fees to the consolidated account.

Department of Primary Industries and Regional Development Annual Report 2018 Page 138

Notes to the financial statements for the year ended 30 June 2018

10.2 Explanatory statement for administered items Significant variations between estimates and actual results for income and expenses as presented in the financial statement titled ‘Summary of consolidated account appropriations and income estimates’ are shown below. Narratives are provided for key major variances, which are generally greater than:  5% and $1.0 million for the Statements of Comprehensive Income

Variance note 2018 Original 2018 Actual Variance estimate estimate and actual Administered Items $000 $000 $000

INCOME Interest revenue 1,439 1,392 (47) Other revenue - 66 66 Royalties for Regions 6,022 6,207 185 Regional Reform Fund 1 (59,494) - 59,494 Service appropriation 1,600 1,600 - Regulatory fees and charges - 279 279 TOTAL ADMINISTERED INCOME (50,433) 9,544 59,977

EXPENSES Grants and subsidies 2 19,165 13,697 (5,468) Interest payments 1,052 1,033 (19) Supplies and services 1,238 990 (248) Transfer to Consolidated Account 3 (63,143) 259 63,402 TOTAL ADMINISTERED EXPENSES (41,688) 15,979 57,667

Department of Primary Industries and Regional Development Annual Report 2018 Page 139

Notes to the financial statements for the year ended 30 June 2018

10.2 Explanatory statement for administered items (continued)

Variances between estimate and actual

1) Royalties for Regions Program: $59.4 million variance, 100% above the budget. This is a budget adjustment applied by Treasury to take into account the expected underspend in the entire Royalties for Regions Fund.

2) Grants and subsidies: $5.5 million variance, 29% below the original budget. This is primarily due to underspends within the RfR projects Kimberley Schools and North-West Aboriginal Housing Initiative.

3) Transfer to Consolidated Account: $63.4 million variance, 100% above the budget. This is a budget adjustment applied by Treasury to take into account the expected underspend in the entire Royalties for Regions Fund.

Department of Primary Industries and Regional Development Annual Report 2018 Page 140

Notes to the financial statements for the year ended 30 June 2018

10.3 Administered assets and liabilities 2018 $'000

Current assets Cash and cash equivalents 5,866 Restricted cash and cash equivalents 96,188 Receivables 6,165 Total administered current assets 108,219

Non-current assets Loan 28,862 Total administered non-current assets 28,862

TOTAL ADMINISTERED ASSETS 137,081

Current liabilities Payables 59 Borrowings 6,103 Total administered current liabilities 6,162

Non-current liabilities Borrowings 28,862 Total administered non-current liabilities 28,862

TOTAL ADMINISTERED LIABILITIES 35,024

Department of Primary Industries and Regional Development Annual Report 2018 Page 141

Additional key performance indicator information

Certification of key performance indicators I hereby certify that the key performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Department of Primary Industries and Regional Development’s performance, and fairly represent the performance of the department for the financial year ended 30 June 2018.

Ralph Addis Director General (Accountable Authority) 14 September 2018

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This section contains our department’s report against the key Key effectiveness indicators performance indicator (KPI) targets of the DPIRD outcome- based management framework that was presented in the Desired outcome: Conservation and sustainable development 2017/18 State Budget. This section is audited by the Auditor of the State’s fish resources General. We use four KPIs to measure the effectiveness of the The methods used to measure our performance against the department’s management plans and regulatory activities in: KPIs are consistent with those used by DPIRD’s former  ensuring the sustainability status of the State’s aquatic agencies to enable comparability with previous years. resources Exemption  the success of keeping fish catches (or effort) at In line with Treasurer’s Instruction 904, the Under Treasurer appropriate levels for has granted an exemption to DPIRD, allowing our department o commercial and to exclude reporting on the effectiveness and efficiency KPIs o recreational fisheries and of the nine RDCs as these statutory authorities will report their  ensuring that sustainably managed commercial fisheries relevant KPIs in their respective 2017/18 annual reports. provide benefits to the State as a result of significant local sales and export earnings from fish and fish products. As such, results of KPIs associated with the desired outcome: ‘The sustainable economic and social development of the We use an additional two KPIs to measure community State’s remote and regional areas’ and the service ‘Regional outcomes. Community and stakeholder perceptions surveys development’ are not reported here. are used to:  examine key aspects of community fishing and appreciation of the aquatic environment, including the trend in recreational fishing participation. This provides an indicator of how management arrangements supporting sustainability are contributing to this recreational pursuit and the lifestyle of Western Australians  assess the understanding and support of the community for the department’s management strategies across the four key fisheries management areas (commercial fisheries, recreational fisheries, protection of the aquatic environment, and aquaculture and pearling).

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1. The proportion of fish stocks identified as not being at For one fishery, northern shark, there is insufficient data to risk or vulnerable through exploitation make an assessment on the target species due to the fishery The department undertakes annual stock assessments of having not operated since 2009. fisheries that are subject to management. These Within the group of 37 assessed fisheries, 31 were considered assessments, together with trends in catch and fishing to have adequate breeding stock levels and a further four activity, have been used to determine the sustainability status fisheries (West Coast Demersal Scalefish Fishery [WCDSF], of the State’s most significant commercial and recreational the Temperate Demersal Gillnet Demersal Longline Fishery fisheries (full details of which are in the companion Status [TDGDLF], the Cockburn Sound Crab Fishery, and the South Reports on Western Australia’s Fisheries and Aquatic Coast Estuarine Fishery within South Coast Nearshore and Resources 2017/18). Estuarine Finfish Resource) had breeding stocks considered Performance is measured as the proportion of fisheries (that to be recovering at acceptable rates (collectively 95% of have sufficient data) for which the breeding stocks of each of fisheries). The WCDSF and TDGDLF target relatively long- the major target or indicator species are: lived species so recovery is expected to take decades to complete.  being maintained at levels that ensure catches can be Of the two remaining fisheries, only the West Coast sustained at desirable levels given effort levels and normal Nearshore and Estuarine Finfish Resource (which includes environmental conditions; or the West Coast Beach Bait Fishery and South West Beach  recovering from a depleted state at an appropriate rate Seine Fishery) continues to be environmentally limited with following management intervention. stocks recovering from the 2010/11 marine heat wave. The department’s 2017/18 target for the proportion of fish Therefore, only one fishery (or 3% of those assessed) has a stocks not at risk from fishing is 97%. single stock that is considered inadequate as a result of For the 2017/18 performance review, 38 fisheries were exploitation (pink snapper in Gascoyne Demersal Scalefish reviewed, which includes two recreational-only fisheries (see Fishery) with management actions recently implemented appendix 2: Breeding stock status, catch and effort ranges for (2018) to assist stock recovery. WA’s major commercial and recreational fisheries). For the 38 Consequently, for the 2017/18 reporting period, the proportion fisheries reviewed, appendix 2 records that breeding stock of fish stocks identified as not being at risk or vulnerable assessments are available for the major species taken in 37 through exploitation is 97%, which is the target level (tables 5 (97%) of these fisheries. and 6). The department considers it has met this performance indicator.

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Table 5 Proportion of fish stocks identified as not being at 2. The proportion of commercial fisheries where catches risk or vulnerable through exploitation or effort levels are acceptable 2017/18 2017/18 Variation This indicator provides an assessment of the success of the Target Actual (%) department’s commercial management plans and regulatory (%) (%) activities in keeping fish catches at appropriate levels Proportion of fish stocks 97 97 0 (including those in a recovery phase). For most of the identified as not being at risk commercial fisheries in WA, each management plan seeks to or vulnerable through directly control the amount of fishing effort applied to stocks, exploitation with the level of catch taken providing an indication of the effectiveness of the plan. Table 6 Historic data on the proportion of fisheries in which Where the plan is operating effectively, annual catches by breeding stocks of the major target species are both each fishery should vary within a projected range. The extent assessed and considered not to be at risk due to fishing of this range reflects the degree to which normal Year Target (%) Fish stocks considered not to environmental variations affect the recruitment of juveniles to be at risk by fishing (%) the stock that cannot be ‘controlled’ by fishery management. Additional considerations include market conditions, fleet 2008/09 82 86 rationalisation or other factors that may result in ongoing 2009/10 85 89 changes to the amount of effort expended in a fishery, which 2010/11 83 94 will in turn influence the appropriateness of acceptable catch ranges for individual fisheries. 2011/12 86 94 2012/13 91 97 An acceptable catch or effort range has been determined for each of the major commercial fisheries (see appendix 2). The 2013/14 94 97 department’s 2017/18 target is 95%. 2014/15 94 97 For quota-managed fisheries, the measure of success of 2015/16 97 95 management arrangements is that the majority of the Total 2016/17 97 95 Allowable Commercial Catch (TACC) is achieved and that it 2017/18 97 97 has been possible to take this catch using an acceptable amount of fishing effort.

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If an unusually large expenditure of effort is needed to take The pink snapper stock in the Gascoyne Demersal Scalefish the TACC, or the industry fails to achieve the TACC by a Fishery is considered inadequate (see above) and significant margin, this may indicate that the abundance of the management action has been implemented during 2018 to stock is significantly lower than anticipated. For these assist stock recovery. reasons, an appropriate range of fishing effort to take a TACC has also been incorporated for assessing the performance of In the 16 effort-controlled fisheries, 13 were within, one quota-managed fisheries (see appendix 2). acceptably above (Kimberley Gillnet and Barramundi Fishery in the North Coast Nearshore and Estuarine Resource) and The major commercial fisheries that have acceptable catch one acceptably below (Shark Bay Beach Seine and Mesh Net and/or effort ranges account for most of the commercial Fishery) their acceptable catch ranges. For effort-controlled volume and value of WA’s landed catch. Comparisons fisheries, the current catch rate of southern rock lobster in the between actual catches (or effort) with acceptable ranges South Coast Crustacean Fishery is below the provisional have been undertaken for 27 of the 36 commercial fisheries threshold and a review of suitable adjustments to referred to in appendix 2. There is still a relatively high management arrangements has commenced. number of fisheries not assessed due to a combination of ongoing environmentally induced stock issues in some In summary, 25 of the 27 commercial fisheries assessed regions (see above) or poor economic conditions with (93%) were considered to have met their performance criteria, fisheries either closed or not having material levels of catches or were affected by factors outside the purview of the during this reporting period. Of the 27 fisheries where management plan/arrangements. Consequently, for the ‘acceptable ranges’ were available and a material level of 2017/18 reporting period, the percentage of commercial fishing was undertaken in the relevant reporting period, 11 fisheries where acceptable catches (or effort levels) are were primarily catch-quota managed with 16 subject to effort- achieved is 93% which is close to the target level of 95%. control management. Since 95% represents either one or two fisheries not within Of the 11 individually transferable catch-quota managed their catch range when assessing 27 fisheries (tables 7 and fisheries, five operated within their acceptable effort/catch 8), the department considers it has generally met this ranges (West Coast Rock Lobster Fishery, Shark Bay Scallop performance indicator. and Crab fisheries, West Coast Deep Sea Crab Fishery and Mackerel Fishery) and five were acceptably below the range (Roe’s Abalone Fishery, Greenlip/Brownlip Abalone Fishery, Pearl Oyster Fishery and the Albany/King George and Bremer Bay/Esperance areas of the South Coast Purse Seine Managed Fishery).

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Table 7 Proportion of commercial fisheries where catches 3. The proportion of recreational fisheries where catches or effort levels are acceptable or effort levels are acceptable 2017/18 2017/18 Variation This indicator provides an assessment of the success of the Target Actual (%) department’s management plans and regulatory activities in (%) (%) keeping fish catches by the recreational sector at appropriate Proportion of commercial 95 93 -2 levels for both stock sustainability (including those in a fisheries where catches or recovery phase) and to meet integrated fisheries management effort levels are acceptable objectives. Previously, WA’s fish resources were shared mainly on an implicit basis, with no explicit setting of catch Table 8 Historic data on the proportion of commercial shares within an overall total allowable catch or corresponding fisheries in which the catch or effort reported is acceptable total allowable effort. relevant to the target management range being applied The department is continuing to implement an Integrated Year Target (%) Fisheries with acceptable Fisheries Management (IFM) approach where the aggregate catch/effort (%) effects of all fishing sectors are taken into account. This involves the use of a framework in which decisions on 2008/09 85 96 optimum resource use (i.e. allocation and re-allocation of fish 2009/10 90 93 resources) are determined and implemented within a total sustainable catch for each fishery or fished stock. IFM is being 2010/11 90 94 progressively phased in and all of the State’s shared fisheries 2011/12 94 100 will come under this new framework as fisheries roll into the 2012/13 88 97 new Aquatic Resources Management Act (ARMA) 2016. 2013/14 92 89 An acceptable catch or effort range is being determined for 2014/15 95 89 each of the major recreational fisheries by the department (see appendix 2). This indicator has only been measured 2015/16 95 90 since 2013/14 and the department’s 2017/18 target is 85%. 2016/17 95 93 For the purposes of this indicator, 19 fisheries or stocks have 2017/18 95 93 been identified as having a ‘material’ recreational catch share.

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Over time, the indicator may need to expand to include Table 10 Historic data on the proportion of recreational reference to fisheries or stocks for which there are other fisheries in which the catch or effort reported is acceptable ‘material’ sectoral shares (e.g. customary fishing). Of the 19 relevant to the target management range being applied recreational fisheries, only five currently have explicit Year Target (%) Fisheries with acceptable acceptable catch ranges developed and another eight have catch/effort (%) implicit ranges that can be used to assess acceptability. Of these 13 fisheries, the data from the 2015/16 statewide 2013/14 80 77 survey of boat-based recreational fishing had catch estimate levels that were all within acceptable catch ranges except pink 2014/15 80 85 snapper which exceeded the recovery acceptable catch range 2015/16 80 100 of the recreational sector within the West Coast Demersal 2016/17 85 100 Scalefish Fishery. 2017/18 85 92 Consequently, for the 2017/18 reporting period, the percentage of recreational fisheries where acceptable catches 4. The volume (tonnes) of State commercial fisheries are achieved is 92%, which exceeds the target level of 85% (including aquaculture) production (tables 9 and 10). The department considers it has met this performance indicator. We aim to manage the State’s fisheries in an economically, socially and environmentally sustainable manner. This Table 9 Proportion of recreational fisheries where catches performance indicator deals with the production component of or effort levels are acceptable the ‘triple bottom line’ approach. Sustainably managed 2017/18 2017/18 Variation commercial fisheries provide benefits to the State as a result Target Actual1 (%) of significant local and export earnings from fish and fish (%) (%) products. Commercial fisheries that are not managed sustainably will suffer reduced production, as less fish Proportion of recreational 85 92 7 products will be available to the catching sectors. Noting the fisheries where catches or economic yield is more important. effort levels are acceptable 1 The production from WA’s commercial fishing, pearling and Mostly 2015/16 data reported in 2017/18. aquaculture sectors is published annually by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), based on data supplied through industry.

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Information for the years 2014/15 to 2016/17 in broad Table 11 WA production – years 2014/15 to 2016/17. groupings is provided in Table 11. Tonnage (t) values are calculated from the catch and The department’s 2017/18 target for production for 2016/17 is effort statistics data supplied by fishers on a monthly/trip 21,500 tonnes, which represents a production level that is basis, or quota returns supplied on a daily basis steadily increasing. 2014/15 (t) 2015/16 (t) 2016/17 (t)1 The tonnage of commercially caught crustaceans, molluscs Crustaceans 9,825 9,624 10,309 and other categories in 2016/17 increased from the previous Molluscs 991 1,131 2,458 year primarily due to increases in catches from the Western Fish 8,947 9,722 9,420 Rock Lobster Fishery and the recently recovered scallop stocks in the Shark Bay Scallop Fishery and the Abrolhos Other2 37 37 129 Islands and Mid West Trawl Fishery. Pearling3,4 Not applicable Not applicable Not applicable The annual finfish production in 2016/17 declined marginally Aquaculture5 1,104 715 1,502 from the previous year due to changes occurring across a Total 20,814 21,229 23,818 number of fisheries. However, the 2016/17 finfish production production represents the second highest level in a number of years. 1 Total aquaculture production increased in 2016/17 due to an Figures current as at end of financial year. increase in finfish production. 2 Miscellaneous invertebrates (e.g. beche-de-mer and sea In summary, the overall tonnage of production in 2016/17 urchins). continues the increasing trend of recent years. The State’s 3 Pearl oyster products other than pearls are included under commercial fishing and aquaculture sectors will, however, molluscs. continue to be affected by a combination of external 4 influences, including environmental conditions that influence Pearl production is not based on volume, therefore the abundances of key species, the impacts of markets and production figures are no longer reported. the increasing adoption of strategies to optimise economic 5 Excludes hatchery production plus algae production for beta- returns rather than maximise catch levels. carotene; western rock oyster and abalone aquaculture Consequently, for the 2017/18 reporting period, the volume of production due to confidentiality (single operators). State commercial fishing (including aquaculture) production was 23,818 tonnes, which exceeds the target level of 21,500t (Table 12). The department considers it has met this performance indicator.

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Table 12 Volume (tonnes) of State commercial fisheries The surveys 1 (including aquaculture) production These surveys are conducted to: 2017/18 2017/18 Variation  measure the level of recall and awareness of our Target Actual (t) informational and promotional activities (t) (t)  assess the understanding and satisfaction of the WA Volume of State 21,500 23,818 2,318 community and fisheries stakeholders of our management commercial fisheries strategies across commercial fisheries, recreational (including aquaculture) fisheries, aquaculture/pearling, and fish and fish habitat production protection 1 Mostly 2016/17 data reported in 2017/18.  examine the key aspects of fishing and appreciation of the aquatic environment by the WA community. Effectiveness indicators 5 and 6: Community outcomes The results from these surveys are used to monitor, evaluate We aim to manage the State’s fisheries in an economically, and improve the effectiveness of the department’s programs, socially and environmentally sustainable manner. Sustainably activities and functions. managed fisheries and aquatic environments provide benefits to the State by providing a range of recreational opportunities An external research company contracted by the department and experiences to the community from snorkeling and conducted the 2018 community survey in late March/April looking at fish in their natural environment to ‘catching a feed’ 2018. Survey respondents were asked about their for the family. Effectiveness indicators associated with experiences and views for the 12-month period prior to their community outcomes are: interview date. Of a total of 3796 in-scope respondents (Western Australian residents aged 18 years and older), 703  the participation rate in recreational fishing interviews were completed representing a response rate of  the satisfaction rating of the broader community and 19% which was higher than in the previous community survey stakeholders as to their perceptions of the extent to which (11% in 2017). The 703 interviews comprised: the department is achieving aquatic resources management objectives.  564 respondents from major cities  58 respondents from inner regional areas The information used to assess our performance against  81 respondents from outer regional/remote/very remote these effectiveness indicators is derived from an annual areas or who were migratory residents. telephone-based community survey and a biennial telephone- based stakeholder survey.

Department of Primary Industries and Regional Development Annual Report 2018 Page 150

This sample was weighted to reflect the population based on Table 13 Participation rate in recreational fishing March 2018 Estimated Residential Population data from the 2017/18 2017/18 Variation Australian Bureau of Statistics (ABS), with the survey Target Actual (%) providing estimates for the 2017/18 financial year. (%) (%) 5. The participation rate in recreational fishing Participation rate in 30 25.4 -4.6 The level of participation and frequency that respondents recreational fishing participate in recreational fishing is a measure of the use of this community resource. Recreational fisheries also provide The estimate of participation rate is lower than the rate social and economic benefits for the community. These may reported in the last decade (i.e. ~28–33%; Figure 2); however, include social benefits, such as spending time with family or it is not statistically different from the participation rate friends and/or economic benefits, such as the sale of tackle, estimates of the previous five years. This participation rate is boats and other gear, and economic support for boating and consistent with the long-term, slight declining trend observed tourism industries based on fishing. since the late 1990s. Based on the estimated residential The department’s 2017/18 target participation rate in population of WA aged five and older at 30 September 2017 recreational fisheries in WA is 30%. Based on survey data, (ABS 2017), the estimated number of people in WA who the 2017/18 participation rate was estimated as 25.4% (95% participated in recreational fishing at least once in the confidence interval, CI [22.2%, 28.7%]) of the WA population previous 12-month period was approximately 612,000 (Table 13). We did not meet this indicator. (95% CI [535,000, 690,000]).

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40 Estimated 33 33 33 32 32 31 Target 33 32 32 29 32 30 33 30 30 30 28 30 30 30 25

20

10 Participation rate(%) Participation

0 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Figure 2 Estimated (with ± 95% CI) and target participation rate of WA residents in recreational fisheries The number of days fished by recreational fishers in the last 12-month period ranged from one to 235 days. The median number of days fished by recreational fishers over the 2017/18 survey period was five days (Figure 3), and the mean number of days fished was 12.5 days. Over half (54.1%) of all recreational fishers fished between one and five days over the 12-month period (Figure 4).

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8 7 7 6 6 6 6 6 5 5 5 5 5 5 4 3 2

No. days fisheddays No. 1 0 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Figure 3 Median number of days fished by recreational fishers in WA

60 54 50

40

30 18 20 11 10 4 2 4 1 2 2 2

0 Percentage of fishers of Percentage 1-5 6-10 11-15 16-20 21-25 26-30 31-35 36-50 51-100 > 100 Days fished Figure 4 Distribution of total number of days fished by recreational fishers in WA in 2017/18

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The Perth metropolitan area from Yanchep to Mandurah was the 6. Satisfaction rating of broader community and most popular area for recreational fishing in the State, with 31.5% stakeholders as to their perceptions of the extent to of the total recreational effort occurring in this region (Figure 5). which the department is achieving aquatic resources The West Coast Bioregion (excluding the Perth metropolitan management objectives: area) was the next most popular area for recreational fishing in (a) Community the State with 18.1% of effort, followed by the South Coast Bioregion (17.9%) and the North Coast Bioregion (b) Stakeholders (Pilbara/Kimberley) (17.9%). Lower levels of fishing were reported In order to assess this indicator, community and stakeholder from the Gascoyne Coast Bioregion (5.6%), the Southern Inland satisfaction is measured across four key management areas: Bioregion (2.9%), and Northern Inland Bioregion (6.0%). commercial fisheries, recreational fisheries, aquaculture/pearling, and protection of fish habitat. North Coast Bioregion As part of the community surveys, respondents were asked to 6.0% rate the department in its management across each of these 2.9% four areas. Rating options included ‘very poor’, ‘poor’, ‘good’ Gascoyne Bioregion or ‘very good’. It must be noted DPIRD was formed from the amalgamation of several government departments, including 17.9% Perth Metropolitan the Department of Fisheries, during this survey period. Thus only respondents who were aware DPIRD or the Department 17.9% of Fisheries or fisheries within DPIRD was responsible for a 5.6% West Coast Bioregion management area were asked to rate our performance for that management area as part of the community survey. All South Coast Bioregion stakeholder respondents were asked about each management area, regardless of their primary interest area. Southern Inland Bioregion Satisfaction rates are calculated for each management area (Freshwater) as the proportion of respondents who ranked our 18.1% Northern Inland Bioregion management of that particular area as ‘good’ or ‘very good’. 31.5% (Freshwater) The overall satisfaction rate is an average of the satisfaction ratings across these four management areas. Note that Figure 5 Regional distribution of recreational fishing effort responses of ‘can’t say’ and ‘neither’ were excluded from the throughout WA in 2017/18 calculation of the satisfaction rates.

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The department’s 2017/18 target overall satisfaction rating by Table 15 Satisfaction rating of broader community as to the broader community is 85%. Based on survey data, the their perceptions of the extent to which the department is department was given an overall satisfaction rate of 86.8% achieving aquatic resources management objectives (95% CI [83.2%, 90.5 %]) by the WA community across these 2017/18 2017/18 Variation four management areas, exceeding the target (tables 14 and Target Actual (%) 15). This rate was similar to those reported for recent years (%) (%) (Figure 6). The department considers it has met this performance indicator. Satisfaction rating of 85 86.8 1.8 The stakeholder survey is conducted biennially and was not broader community as to scheduled for 2018. Previous survey satisfaction ratings of their perceptions of the stakeholders have been lower than the satisfaction rating of extent to which the the broader community (Figure 6). department is achieving aquatic resources Table 14 Satisfaction rate (%) of the WA community management objectives across key fisheries management areas in 2017/18 Key fisheries management Number of Satisfaction areas respondents rate (%) Commercial fisheries 200 84.7 Recreational fisheries 241 89.8 Aquaculture and pearling 136 90.2 Fish habitat protection 179 82.6 Overall 424 86.8

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100 85 86 86 87 Community 90 81 85 85 85 81 80 80 Stakeholders 80 75 75 65 67 70 60 50 40 30

Satisfaction rate (%) rateSatisfaction 20 10 0 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Figure 6 Estimated overall satisfaction rate of the broader Western Australian community (with ± 95% CI) and departmental stakeholders

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Desired outcome: A profitable, innovative and sustainable This KPI includes co-investment through entities created as a agrifood sector that benefits Western Australia means of building collaboration, such as AEGIC Ltd, but We use four KPIs to measure our effectiveness in contributing excludes profit-oriented entities established to ensure the to a profitable, innovative and sustainable agrifood sector for successful commercialisation of activities no longer receiving Western Australia. The first focuses on co-investment and direct government support, such as InterGrain Pty Ltd. allows us to understand our effectiveness in encouraging Table 16 shows that our expenditure of co-invested funds was industry and others to invest alongside the State Government 22.4% of NCoS, below our 2017/18 target of 25%. in developing and promoting Western Australia’s agrifood We did not meet this indicator, however, the result was sector. significantly influenced by the unforeseen, approximately The other three KPIs focus primarily on the extent to which $20 million devaluation of the department’s South Perth site. If business owners and managers believe we have positively the devaluation had not occurred, the result would have been influenced their industry over the past 12 months. They are 25.2%, which would have met this target. derived from an annual survey of producers, intermediaries Note actual co-investment expended was 19.2% greater than (such as processors and exporters) and agrifood consultants. in the previous year, mainly attributed to additional co- 7. Proportion of co-investment in department-led investment from the Grains Research and Development initiatives Corporation into both AEGIC and the State’s broader grains research and development program. This result reflects the Investment included under this KPI relates to both cash and in-kind resources for all work undertaken, or commissioned by department’s strong ability to leverage funding from industry us, and funded in part by the Western Australian Government, and government. excluding those in which we play a purely administrative role.

Table 16 Proportion of co-investment in department-led initiatives 2014/15 2015/16 2016/17 2017/18 2017/18 Variation (%) (%) (%) Target Actual (%) (%) (%) Co-investment in DPIRD-led 25.0 24.6 22.7 25.0 22.4 -2.6 initiatives (as % of NCoS*) *NCoS = net cost of services related to this desired outcome

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Effectiveness indicators 8–10: Industry views on our Table 17 Threshold stocking and production levels for effectiveness producers considered in the 2018 survey The following three effectiveness indicators are used to Principal product type Threshold evaluate our department’s impact on the profitability, Sheep >2000 head innovativeness and environmental sustainability of the agrifood sector. These indicators are determined by a survey Grain >500 tonnes harvested of agrifood producers, intermediaries and consultants Beef – agricultural >500 head undertaken each year. Beef – pastoral >2500 head The survey Intensive livestock This year’s survey involved 401 respondents comprising 299 – Dairy >200 head primary producers, 68 intermediaries (primarily processors, – Pig (breeders) >50 sows marketers and exporters) and 34 agribusiness consultants – Pig (growers) >1000 head (sourced from the independent, agriculture-specific consultants listed on the website of the Australian Association – Poultry >10 000 head of Agricultural Consultants (WA) Inc.). Indicator benchmark It was designed, executed and analysed by Painted Dog Respondents rated our impact on a scale from zero to 10, with Research. Producer respondents were drawn primarily from zero representing ‘no impact at all’, five is ‘had a medium the state’s major agricultural industries — grains, sheep, beef, impact’ and a score of 10 indicating the department ‘had a dairy and horticulture. To the extent possible, the survey very strong impact’. In 2016/17, the formal benchmark for focused on larger producers, using the threshold criteria set these indicators was amended to be that a score of five or out in Table 17. Scale criteria were not applied to horticultural above is considered a ‘moderate to significant’ (i.e. ‘medium producers due to the diversity of their production systems, or to very strong’, 5-10) impact. In prior years, only scores of six to intermediaries or consultants. or above were considered, this being deemed a ‘significant’ impact. The change was made on the basis that, in previous years, scores of five and above had shown greater variation — and hence greater interpretative value — than when they were restricted to scores of six and above.

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This benchmark of five and above is the formal benchmark, 8. Proportion of businesses that consider the however both results are shown for comparative purposes. department has positively influenced the profitability The six and above benchmark does not include a 2017/18 of the sector target. This year’s survey indicated that, across all respondents, Key survey messages against the formal indicator 48.7% rated the department as having a medium to very benchmark strong impact on the profitability of their industry over the past year. This result is significantly better than the 2016/17 result  The 2017/18 KPI results across all respondents are the of 41.5%, and above the 2017/18 target of 42% (Table 18). best the department has achieved since 2013/14.  Producers and intermediaries rated the department more While there was a slight decline in the rating received from favourably across all KPIs than in the previous financial consultants, with 55% viewing our department’s influence on year, however, consultants did show a reduction in their profitability as medium to very strong, compared to 60% in rating of the department’s influence on all KPIs. 2016/17, primary producers’ and intermediaries’ ratings were  There was a significant increase in intermediaries’ ratings significantly higher. In 2017/18, primary producers rated the of the department’s influence on profitability and department’s influence on profitability higher than last year, innovation, with a smaller increase in sustainability. This increasing from 42% to 50%. A similar trend was recorded for may be attributed to the 85% of intermediaries looking to intermediaries, up from 30% to 40% in 2017/18. The grow their businesses over the coming years, with fewer department considers it has met this performance indicator. looking to just maintain their businesses. Additionally, the survey highlighted the growing confidence and optimism about the future among respondents. This is likely due to a number of reasons, including current high produce prices, respondents feeling confident in their plans and choices, and growing opportunities.

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Table 18 Respondent ratings of DPIRD’s impact on profitability Impact scored at 2014/15 2015/16 2016/17 2017/18 2017/18 Variation 5 or above (%) (%) (%) Target Actual (%) (%) (%) Profitability 46.1 42.1 41.5 42.0 48.7 6.7 Impact scored at 6 or above Profitability 24.6 24.6 27.2 NA 21.3 NA

To further understand this KPI, respondents are also asked about their aspirations for business growth, and whether they are seeking to grow, maintain or reduce their business. The 2017/18 survey found 57% of respondents are seeking to grow their business over the next three years, and 33% are seeking to maintain their current business size and structure. Of those looking to increase, 45% rated the department’s influence on profitability as medium to very strong, in line with last year’s result of 43%. Similarly, of those seeking to grow their businesses, it was again the newer entrants to the sector that rated us most highly, continuing a trend noted in last year’s report. Of respondents with 20 years’ or less experience in the industry, 54% rated our impact on the profitability of the sector as medium to very strong.

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9. Proportion of businesses that consider the Among the group of respondents seeking to grow their department has fostered innovation in the sector business, 48% rated the department’s impact on innovation in The impact of the department on the ability of industry to their industry as medium to very strong, up from 44.8% last make changes in the future is used as a proxy for the year. This highlights that our impact on the key group who will department fostering innovation in the sector. Our focus under drive the future growth of the sector is positive and increasing. this indicator is support to businesses to be able to make There was a strong increase in the rating of the department’s timely, locally-relevant and evidence-based decisions. influence on innovation from both intermediaries (50%) and This year’s survey highlights that 49.8% of respondents rate producers (50%), compared with 2016/17 results of 34% and the department’s impact on their innovativeness as medium to 45% respectively. Consultants’ ratings reduced slightly from very strong. This is an improvement on last year’s result of 51% in 2016/17 to 48% in 2017/18. The department considers 43.7%, and is higher than our 2017/18 target of 44% it met this performance indicator. (Table 19). This is a positive sign, showing the department’s delivery of products and services beyond its core regulatory functions is valued. Table 19 Respondent ratings of DPIRD’s impact on innovativeness Impact scored at 5 2014/15 2015/16 2016/17 2017/18 2017/18 Variation or above (%) (%) (%) Target Actual (%) (%) (%) Innovativeness 45.8 40.5 43.7 44.0 49.8 5.8 Impact scored at 6 or above Innovativeness 24.7 23.2 23.5 N/A 23.4 N/A

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10. Proportion of businesses and key stakeholders that consider the department has positively influenced the sustainability of the sector This effectiveness KPI relates to our impact on the environmental sustainability of the agrifood sector. Of the total respondents, 50.9% rated our impact as medium to very strong, an increase on the 2016/17 result of 47.7%, and higher than our 2017/18 target of 48% (Table 20).

Table 20 Respondent ratings of DPIRD’s impact on sustainability Impact scored at 5 2014/15 2015/16 2016/17 2017/18 2017/18 Variation or above (%) (%) (%) Target Actual (%) (%) (%) Sustainability 46.9 47.0 47.7 48.0 50.9 2.9

Impact scored at 6 or above Sustainability 28.6 27.0 31.5 NA 26.7 NA

Ratings for both producers and intermediaries have increased this year with producers up from 47% in 2016/17 to 51% in 2017/18 and intermediaries up from 46% to 48% in the same period. The consultant category has remained steady. The department considers it met this performance indicator.

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Desired outcome: Increased capacity of regional communities 11. Client satisfaction with regional development services to develop economic growth and social wellbeing To determine the effectiveness of the delivery of the This desired outcome is supported by a variety of department’s regional development services and programs, departmental services, including: an independent survey was conducted gathering feedback from a cross section of the department’s regional  administration and delivery of the Royalties for Regions development clients, including government departments, local program government bodies, businesses, non-government  support to the Regional Development Commissions, organisations and regional community groups. including resources to deliver their agreed business plans and local projects Two hundred and five surveys were completed from a list of  secretariat support to the Regional Development Council 419 valid stakeholders (a response rate of 49%) giving a and the WA Regional Development Trust maximum standard error ratio of +/-4.9% at the 95%  community development, including advice, funding and confidence level. While below our target, our result of 79% is support to Community Resource Centres a satisfactory result. The lower satisfaction rating this year  development and initiation of new government initiatives to reflects the level of change and disruption across the portfolio achieve jobs and economic growth in regional WA as a result of Machinery of Government reform.  investment facilitation for WA agribusinesses and food small to medium enterprises.

Table 21 Client satisfaction with regional development services 2015/16 2016/17 2017/18 2017/18 Variation Actual (%) Actual (%) Target (%) Actual (%) (%)

Client satisfaction with Regional Development 86 87 85 79 –6 Services

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Key efficiency indicators In calculating the key efficiency indicator targets, it is assumed that the department will operate at full capacity (i.e. all full- Desired outcome: Conservation and sustainable development time equivalent positions occupied) for the full year. This is not of the State’s fish resources normally the case and consequently the target cost per hour is normally less than the actual cost. This fact is demonstrated The key efficiency indicators for this outcome have been in the closer alignment when comparing actual results from calculated by dividing the total service by the hours attributed one year to the next. to delivering the service. The measures enable analysis of variance in costs from year to year and provide a benchmark Explanations for those variances greater than 10% have been for comparison against like service deliveries. included within each service. They indicate the average cost per hour of service required to Service 1: Fisheries management deliver services and outcomes, and include all costs Fisheries management includes the development of policy associated with the specific service. To report the total cost of and procedural frameworks for the management of the State’s service and hourly rate, department-wide corporate fisheries, aquaculture and the aquatic environment, including overheads, executive and divisional support expenses are legislation and management plans, consultation with fishing allocated across services and incorporated into key efficiency industry stakeholders and the community. indicators based on the total direct hours delivered by each service. 1.1. Average cost per hour for management (excluding grants and fisheries adjustments) Grants, fisheries adjustments and payments to stakeholder groups are excluded from key efficiency indicators (as Efficiency in Service 1 is described as the average cost per appropriate) where these expenses are not considered to be hour for services delivered excluding payments for grants and a cost of service delivery. fisheries adjustment schemes (Table 22).

Table 22 Efficiency indicator for DPIRD’s fisheries management service 2014/15 2015/16 2016/17 2017/18 2017/18 Variation Actual Actual Actual Target Actual Average cost per hour of $196 $174 $165 $159 $192 $33 management (excluding grants and fisheries adjustments)

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The increase in the 2017/18 actual compared to the 2017/18 target of $33 (or 17%) reflects a significant reduction in hours delivered in this service, following the implementation of the government’s Voluntary Targeted Separation Scheme. In addition, an error in the calculation of the 2017/18 target resulted in an understatement in this indicator. Service 2: Enforcement and education Through the enforcement and education service, the department raises community awareness and understanding of fisheries and aquatic management issues and the need to adhere to the rules governing these activities. This service enforces fishing rules and also plans and instigates investigations and enforcement strategies. 2.1. Average cost per hour of enforcement and education Efficiency in Service 2 is described as the average cost per hour for services delivered (Table 23).

Table 23 Efficiency indicator for DPIRD’s enforcement and education service 2014/15 2015/16 2016/17 2017/18 2017/18 Variation Actual Actual Actual Target Actual

Average cost per hour of $179 $140 $145 $146 $154 $8 enforcement and education

The 2017/18 financial year was consistent with the previous year’s operations, resulting in similar Total Cost of Services outcomes. The subsequent variance in cost per hour to target for 2017/18 was less than 10%. The department considers that it has generally met this indicator.

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Service 3: Research and assessment The research and assessment service provides scientific knowledge for the sustainable management of the State’s fisheries and aquatic resources and the associated environment. 3.1. Average cost per hour of research and assessment Efficiency in Service 3 is described as the average cost per hour for research and assessment services (Table 24).

Table 24 Efficiency indicator for DPIRD’s research and assessment service 2014/15 2015/16 2016/17 2017/18 2017/18 Variation Actual Actual Actual Target Actual

Average cost per hour of $107 $104 $110 $111 $113 $2 research and assessment

The 2017/18 financial year was consistent with the previous year’s operations, resulting in similar Total Cost of Services outcomes. The subsequent variance in cost per hour to target for 2017/18 was less than 10%. The department considers that it has generally met this indicator.

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Desired outcome: A profitable, innovative and sustainable A reduction in this KPI represents a more efficient service in agrifood sector that benefits Western Australia that a smaller investment by government is linked to increased economic activity for the State. The efficiency with which we undertake each of our services in relation to this desired outcome is estimated by the same Understanding co-investment in department-led two indicators: initiatives related to net cost of service 1. the net cost of each service as a factor of the gross value Co-investment is used as an indicator of our efficiency in of agricultural production (GVAP); and leveraging the State Government’s investment by partnering 2. the extent of co-investment we attract to each service. with other parties — across other governments, industry and the community — to invest in the same strategic goals we Understanding net cost of service as a factor of GVAP seek to achieve. This indicator compares our investment in each service area We do not include funding from the RfR program as ‘co- with the GVAP for Western Australia as calculated by the investment’ in this context because it is sourced from the Australian Bureau of Statistics (ABS). State Government. However, we do include third party funding linked to individual RfR projects. The GVAP figure used in these KPIs of $8.1 billion represents the average of the past five years of published GVAP values. Co-investment may be provided in the form of cash or in-kind The most-recently published GVAP figure is for 2016/17. The contributions. average is used to minimise the annual variability that results An increase in this KPI represents a more efficient service. from seasonal, marketing and other influences. This value Results – impact of devaluation of DPIRD South Perth site continues the upward trend of the GVAP five-year average in Western Australia. The department met four of the 12 efficiency indicators for the services related to this outcome. GVAP understates the overall economic activity of the sector, However, the total net cost of service related to this outcome, as it does not include activity that happens past the farm gate. which influences these efficiency indicators, was higher than However, it is the most consistent, independent and broadly expected due to an unforeseen, approximately $20 million based benchmark relevant to the sector. devaluation of the department’s South Perth site. The net cost of service represents funding provided to the If the devaluation had not occurred, one additional GVAP department by the State Government, less revenue returned efficiency indicator would have been met: Service 8 – to government by the department through fees, charges and Biosecurity and Product Integrity. Results are presented sales. below for that service. Impacts on the other GVAP indicators were minimal.

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In addition, if the devaluation had not occurred, one additional 4.2. Public and private sector co-investment in co-investment efficiency indicator would have been met: department-led market-development initiatives as a Service 4 - Market development, investment and market factor of the net cost of this service access, and we would have been closer to meeting several Co-investment in this service was equivalent to 12.2% of the other co-investment efficiency indicators. Additional net funding provided by the State Government, just below our comments are provided below. target of 13.0% (Table 25). We did not meet this performance Separately, co-investment expended was higher than the indicator. previous year in five of the six services, which demonstrates If the unforeseen devaluation of the South Perth site had not the value clients see in co-investing with the department. occurred, the result would have been 13.9%, and we would Service 4: Market development, investment and market have met the indicator. access Table 25 Efficiency indicators for DPIRD’s market This service supports Western Australian agrifood businesses development, investment and market access service to increase their access to domestic and international 2016/17 2017/18 2017/18 Variation markets. Actual Target Actual It aims to support current and prospective industries to Net cost of 0.26 0.3 0.21 -0.09 develop the marketing and business arrangements they need service to remain globally competitive. It focuses on the development (as % of GVAP) of coordinated growth initiatives, collaborative processes and networks that help the State’s agrifood sector increase its Co-investment 11.6 13.0 12.2 -0.8 in this service contribution to the Western Australian economy. (as % of NCoS* 4.1. Net service cost as a factor of GVAP for this service) Table 25 shows that the net cost of this service represented Source: DPIRD, ABS; *NCoS = net cost of service 0.21% of the gross value of Western Australia’s agricultural production. This is a better result than our target of 0.3% and is mainly attributable to an increase in Western Australia’s five-year GVAP average. The department considers that it met this performance indicator.

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Service 5: Productivity improvement and innovation 5.2. Public and private sector co-investment in This service supports businesses to optimise the technical department-led productivity improvement and side of their enterprise by increasing the volume and cost innovation initiatives as a factor of the net cost of this effectiveness of their products. service It applies to all elements of the supply chain and to the key Co-investment in this service was equivalent to 47.7% of the systems and processes required for an internationally net funding provided by the State Government, below our competitive sector. This focus is particularly important in the target of 57.0% (Table 26). We did not meet this performance current economic environment where businesses are being indicator. challenged by rapid technical changes, increasing climate If the unforeseen devaluation of the South Perth site had not variability and evolving capital and financing arrangements. occurred, the department would have been closer to meeting The department provides a range of tools to foster innovation the target with a result of 53.0%. in target industries, and is constantly developing new tools in Note actual co-investment in this specific service was up by response to emerging trends and opportunities. 8.1% on the previous year, a positive result, demonstrating 5.1. Net service cost as a factor of GVAP the value our partners see in co-investing with us. Table 26 shows that the net cost of this service represented Table 26 Efficiency indicators for DPIRD’s productivity 0.41% of the gross value of Western Australia’s agricultural improvement and innovation service production. This result did not meet the performance indicator 2016/17 2017/18 2017/18 Variation target of 0.3%. It reflects a significant increase in the number Actual Target Actual of projects delivered by the department under this service compared to the previous year. Examples include additional Net cost of 0.27 0.3 0.41 0.11 spending related to Doppler radar and grower groups. service (as % of GVAP) Co-investment 69.7 57.0 47.7 -9.3 in this service (as % of NCoS* for this service) Source: DPIRD, ABS; *NCoS = net cost of service

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Service 6: Business development and promotion 6.2. Public and private sector co-investment in This service relates to the department’s focus on the department-led business development and commercial components needed for business success. It promotion initiatives as a factor of the net cost of involves working with industry to facilitate the development of this service investment ready supply chains: helping business owners Co-investment in this service was equivalent to 19.2% of the align their corporate skills and knowledge with global best net funding provided by the State Government, below our practices and developing decision-aiding tools that support target of 23.0% (Table 27). We did not meet this performance business success. It aims to help growing businesses in their indicator. efforts to increase the quality and marketability of their If the unforeseen devaluation of the South Perth site had not existing and emerging products, and in managing their occurred, the department would have been closer to meeting business risks. the target with a result of 21.7%. 6.1. Net service cost as a factor of GVAP Note actual co-investment in this specific service was up by Table 27 shows that the net cost of this service represented 4.8% on the previous year, a positive result. 0.19% of the gross value of Western Australia’s agricultural Table 27 Efficiency indicators for DPIRD’s business production, better than our target of 0.2%. The department development and promotion service considers that it met this performance indicator. 2016/17 2017/18 2017/18 Variation Actual Target Actual Net cost of 0.16 0.2 0.19 -0.01 service (as % of GVAP) Co-investment 21.7 23.0 19.2 -3.8 in this service (as % of NCoS* for this service) Source: DPIRD, ABS; *NCoS = net cost of service

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Service 7: Productive natural resources If the unforeseen devaluation of the South Perth site had not This service supports the productive capacity and health of occurred, the department would have been slightly closer to the natural resources: land, water, native vegetation and meeting the target with a result of 35.4%. biodiversity that underpin the agrifood the sector. This is Note actual co-investment in this specific service was up by essential both to the viability of the sector and to maintaining 23.9% on the previous year, a positive outcome, the physical environment and amenity that all Western demonstrating the value clients see in co-investing with the Australians value and enjoy. This work involves partnerships department on productive natural resources activities. with industry and a wide range of government agencies to However, the increase in the net cost of delivering this service fulfil shared responsibilities. offset this growth. 7.1. Net service cost as a factor of GVAP Table 28 Efficiency indicators for DPIRD’s productive Table 28 shows that the net cost of this service represented natural resources service 0.27% of the gross value of Western Australia’s agricultural 2016/17 2017/18 2017/18 Variation production. Actual Target Actual This result did not meet the performance indicator target of Net cost of 0.07 0.1 0.27 0.17 0.1%, and reflects a 300% increase in the NCoS of this service service from $5.6 million in 2016/17 to $22.1 million in (as % of GVAP) 2017/18. The growth was largely driven by an increase in the Co-investment 100.1 65.0 31.6 -33.4 value of externally funded and Royalties for Regions projects in this service delivered by the department, including in wild dog (as % of NCoS* management and the Water for Food project. for this service) 7.2. Public and private sector co-investment in Source: DPIRD, ABS; *NCoS = net cost of service department-led initiatives related to productive resource management initiatives as a factor of the net cost of this service Co-investment in this service was equivalent to 31.6% of the net funding provided by the State Government, below our target of 65.0% (Table 28). We did not meet this performance indicator.

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Service 8: Biosecurity and product integrity If the unforeseen devaluation of the South Perth site had not This service protects the productivity, marketing, occurred, the department would have been closer to meeting environmental and social advantages that all Western the target with a result of 16.6%. Australians enjoy from being free of the world’s most serious Note actual co-investment in this specific service was up by weed, pest and disease threats. While the Australian 62.6% on the previous year, a positive result, affirming Quarantine and Inspection Service provides the frontline of industry support and the value it gains from co-investing with defence against biosecurity threats arriving from overseas, all the department on biosecurity and product integrity activities. other biosecurity management responsibilities rest with the Examples of additional co-investment were in our work in states, including keeping out a number of significant threats interstate quarantine, invasive species and wild dog endemic to the Eastern States but not Western Australia. The management. However, this increase in co-investment was world’s premium food markets are increasingly demanding offset by NCoS increasing. that their suppliers have highly sophisticated biosecurity Table 29 Efficiency indicators for DPIRD’s biosecurity and management capabilities at local to international levels. product integrity service 8.1. Net service cost as a factor of GVAP 2016/17 2017/18 2017/18 Variation Table 29 shows that the net cost of this service represented Actual Target Actual 0.75% of the gross value of Western Australia’s agricultural Net cost of 0.64 0.7 0.75 0.05 production. service This result just did not meet the performance indicator target (as % of GVAP) of 0.7%. However, if the unforeseen devaluation of the South Co-investment 11.0 18.0 14.8 -3.2 Perth site had not occurred, the department would have met in this service this indicator with a result of 0.66%. (as % of NCoS* for this service) 8.2. Public and private sector co-investment in department-led biosecurity and product integrity Source: DPIRD, ABS; *NCoS = net cost of service initiatives as a factor of the net cost of this service Co-investment in this service was equivalent to 14.8% of the net funding provided by the State Government, below our target of 18.0% (Table 29). We did not meet this performance indicator.

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Service 9: A business environment for growth If the unforeseen devaluation of the South Perth site had not This service optimises policy settings and relationships across occurred, the department would have performed even better government, industry and related organisations. against the target with a result of 13.1%. It reflects the leadership that the department provides in Note actual co-investment in this specific service was up by partnering with stakeholders in terms of the regulatory, policy 22.5% on the previous year, demonstrating the value clients and planning settings that affect the agrifood sector. It see in co-investing with the department on growth activities. involves building the combined ability of governments, Additional co-investment in 2017/18 included that from GRDC industry and the broader community to develop the agrifood in grains research and development and other co-investment sector while dealing with biosecurity and natural resource in wild dog management. risks. An increasingly complex and changing world requires a Table 30 Efficiency indicators for DPIRD’s business collaborative approach that allows the agrifood sector to environment for growth service develop in the most efficient and effective manner possible. 2016/17 2017/18 2017/18 Variation 9.1. Net service cost as a factor of GVAP Actual Target Actual Table 30 shows that the net cost of this service represented Net cost of 0.53 0.5 0.43 -0.07 0.43% of the gross value of Western Australia’s agricultural service production. This is a better result than our target of 0.5% and (as % of GVAP) is mainly attributable to an increase in Western Australia’s Co-investment 7.8 9.0 11.4 2.4 five-year GVAP average. in this service (as % of NCoS* The department considers that it met this performance for this service) indicator. Source: DPIRD, ABS; *NCoS = net cost of service 9.2. Public and private sector co-investment in department-led growth initiatives as a factor of the net cost of this service Co-investment in this service was equivalent to 11.4% of the net funding provided by the State Government, above our target of 9.0% (Table 30). We met this performance indicator.

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Desired outcome: Increased capacity of regional communities Table 31 Efficiency indicators for DPIRD’s regional to develop economic growth and social wellbeing investment service Service 10: Regional investment 2015/16 2016/17 2017/18 2017/18 Variation Actual Actual Target Actual ($) This service delivers a pipeline of quality initiatives to drive a ($) ($) ($) ($) long-term, high-value approach to the RfR program. This is achieved through identifying and assessing projects against Average cost 16,998 22,157 28,837 25,907 -2,931 regional priorities, needs and solutions, including per funded infrastructure, economic development, job creation and initiative community services. administered Average 4,661 4,239 - - - 10.1. Average cost per funded initiative administered internal cost The number of open, funded initiatives is comprised of the per satellite number of RfR agreements signed and funds disbursed. site These are projects that are actively reporting to the supported department on expenditure. The decrease of average cost per funded initiative administered between the 2017/18 Budget Target and 2017/18 Actual is mainly attributable to lower net cost of this service than budgeted. The department considers that is has met this performance indicator. 10.2. Average internal cost per satellite site supported As per the 2017/18 Budget Paper, there is no Budget Target for the average internal cost per satellite site supported. The number of satellite sites supported related to broadcasting by the Westlink program. As part of the Agency Expenditure Review process, Westlink was identified for closure in 2017/18 due to the diminishing interest in using Westlink as a communication tool in recent years.

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Service 11: Regional policy Table 32 Efficiency indicator for DPIRD’s regional policy This service provides strategic input into policy and strategy service directions to support increased regional business 2015/16 2016/17 2017/18 2017/18 Variation development and investment to grow and attract business for Actual Actual Target Actual ($) the economic and social benefits of regional communities and ($) ($) ($) ($) the State. Average cost 5,974 11,112 11,105 4,097 -7,008 11.1. Average cost per item of written advice requiring per item of Minister’s attention written advice Average cost is calculated by the internal cost incurred by the requiring areas responsible for regional policy and divided by the Minister’s tracked number of written advice items requiring the attention attention of the Minister for Regional Development. The number of written advice items requiring the Minister’s attention comprises the total number of Ministerial correspondence, [End of audited KPI section.] advice, briefing notes, Cabinet submissions, responses to parliamentary questions, contentious issues and media statements submitted to the Minister for Regional Development. The decrease of average cost per item of written advice requiring Minister’s attention between the 2017/18 Budget Target and 2017/18 Actual is mainly attributable to lower net cost of this service than budgeted and higher number of written advice requiring the Minister’s attention. The need for additional resources to sustain this level of activity has been identified and will be addressed through organisational redesign.

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Ministerial directives Capital works Capital works undertaken during the year focused on a No ministerial directives were received during the financial year. number of building, infrastructure, equipment and information technology projects. This was to enable us to meet our corporate and operational needs in regional and metropolitan Other financial disclosures locations as the newly created DPIRD and to complete projects that were former commitments of the previous Pricing policies of services provided standalone departments. This is outlined in Table 33. DPIRD charges on a full or partial cost recovery basis for some goods and services, with fees and charges determined in accordance with the Costing and Pricing Government Services: Guidelines for use by Agencies in the Western Australian Public Sector published by the Department of Treasury and statutory requirements. The 2017/18 list of fees and charges was implemented on 1 July 2017. DPIRD receives a significant proportion of own source revenue from regulatory fees and charges related to commercial and recreational fishing, aquaculture and biosecurity services. The level of cost recovery for all fees and charges is based on the nature of the transaction. For example, commercial access to fish resources is determined to reflect an appropriate payment to the community for access to that resource. Similarly, some services may be exempted from charges in certain circumstances. This may include, but not be limited to, where the service relates to an outbreak of a suspected exotic disease or where the service involves approved research or surveillance.

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Table 33 Capital works program 2017/18 Capital projects Year of Estimated Estimated Estimated Variation Explanation of completion cost to total cost of total cost of between variances over complete the project the project at 2017/18 and $500,000 the project at 2017/18 2016/17 2016/17 $’000 $’000 $’000 estimated total cost of the project $’000 Projects that remain uncompleted at the end of 2017/18

Coral Bay seasonal staff 2019/20 387 387 387 – accommodation Equipment replacement 2021/22 10,892 36,891 32,213 4,678 This is an annual rolling program budget that fluctuates depending on actual spend per annum Information management 2018/19 2,250 32,219 31,854 365 systems upgrade Help grain growers to better 2018/19 652 3,332 3,332 – manage risk (eConnected) Regional Natural Resource 2019/20 2,928 9,983 10,009 -26 Management program Wild Dog Action Plan 2020/21 7,143 10,143 12,880 -2,737 Project re-cashflowed during 2017/18 Abrolhos Islands airstrips 2020/21 300 874 874 – rolling program

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Capital projects Year of Estimated Estimated Estimated Variation Explanation of completion cost to total cost of total cost of between variances over complete the project the project at 2017/18 and $500,000 the project at 2017/18 2016/17 2016/17 $’000 $’000 $’000 estimated total cost of the project $’000 Abrolhos Islands general 2020/21 600 1,922 1,922 – rolling program Fish health laboratory 2018/19 400 1,000 1,000 – Watermans research Fitout furniture and office 2020/21 1,800 5,184 5,243 -59 equipment rolling program Operational equipment rolling 2021/22 2,377 5,329 4,194 1,135 This is an annual rolling program budget that fluctuates depending on actual spent per annum Small boats and trailers 2020/21 4,642 11,569 11,569 – rolling program Computing hardware and 2020/21 450 3,700 3,800 -100 software rolling program Information system 2020/21 1,200 2,792 2,792 – development rolling program Shark monitoring network 2020/21 225 795 795 – Great Kimberley Marine Park 2018/19 325 430 425 5

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Capital projects Year of Estimated Estimated Estimated Variation Explanation of completion cost to total cost of total cost of between variances over complete the project the project at 2017/18 and $500,000 the project at 2017/18 2016/17 2016/17 $’000 $’000 $’000 estimated total cost of the project $’000 Kimberley Development 2017/18 – 100 100 – Commission – refurbishment of Kununurra office Dolphin Discovery Centre 2018/19 6,200 12,255 12,290 -35 North-West Aboriginal 2021/22 95,000 100,000 100,000 – housing initiative Projects completed during 2017/18 Managing pest animals and 2017/18 – 150 – 150 New project in 2017/18 weeds (White paper) Boosting Biosecurity Defences 2017/18 – 477 477 – Grainswest infrastructure 2017/18 – 7,436 6,836 600 Project re-cashflowed during 2017/18

Replacement and upgrade of 2017/18 – 228 1,126 -898 Project re-cashflowed public jetties at East Wallabi during 2017/18 and Beacon Islands Albany multi-species mollusc 2017/18 – 1,800 1,800 – hatchery

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Capital projects Year of Estimated Estimated Estimated Variation Explanation of completion cost to total cost of total cost of between variances over complete the project the project at 2017/18 and $500,000 the project at 2017/18 2016/17 2016/17 $’000 $’000 $’000 estimated total cost of the project $’000 Great Southern Development 2017/18 – 25 25 – Commission – purchase of records management system Department of Biodiversity, 2017/18 – 500 – 500 New project in 2017/18 Conservation and Attractions Bunbury headquarters 2017/18 Equipment 2017/18 – 112 112 – replacement program

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Employment and industrial relations develop consolidated policies for our new department through the systematic review of former department Table 34 Staff profile approaches to staffing matters Staff profile 2016/17 2017/18  continuing to support and develop DPIRD graduates from Average FTE* Average FTE* the former departments, with a focus on development and Permanent full time 1251.5 1,196.0 network opportunities. This included graduates participating in the Public Sector Commission (PSC) Permanent part time 157.5 154.6 Graduate Program Temporary full time 237.5 240.5  implementation of a single online learning management Temporary part time 67.3 73.5 system containing an initial suite of training courses, Total 1713.7 1,664.6 accessible by all DPIRD staff, which will be expanded in the future. The new system ensures all staff have access *Full-time equivalent (FTE) to the same corporate information, supporting the Note: The 2016/17 staffing profile is comprised of FTE in the integration of our department former departments of Agriculture and Food, Fisheries and  developing a Core Capability Framework that articulates Regional Development and the FTE of the RDCs, presented the capabilities required across the department to deliver as an average across the 2016/17 financial year. Previously on our strategic intent calculated data for the Department of Regional Development  demonstrating a strong commitment to developing the and the RDCs was in some cases given as an FTE number at leadership and management capabilities of our staff, the last pay date in the financial year and therefore, has been through the delivery and support of a number of central recalculated to provide an average across the 2016/17 year government and external programs so that all data is calculated consistently.  building staff preparedness for change through support Staff development and training in the areas of resilience, resume writing and selection criteria skills, and mental health support, Key activities during 2017/18 included: including online training and resources  commencing review and development of key staffing  hosting an inaugural workshop for our volunteer network of policies, with the preparation of our Values and workplace support officers. The workshop brought our Behaviours Charter and the launch of a new Code of volunteers together under a consolidated, department- Conduct, a grievance handling procedure and interim wide Employee Support Network that provides employees instructions for the filling of vacancies while we are with mental health support and assistance in the resolution conducting our organisational restructure. We continue to of workplace conflict.

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Unauthorised use of corporate credit cards Governance disclosures DPIRD is required to report on instances where a DPIRD- issued government purchasing card (‘a credit card’) was used Shares held by the department for personal use. Table 35 Unauthorised use of credit cards 2017/18 Our department does not hold shares in any subsidiary body as defined by s. 60 of the Financial Management Act 2006. Description Quantity/value

Number of instances the Western Australian 113 Director indemnity insurance Government purchasing card has been used There was no insurance premium paid to indemnify any for personal use expenditure director (as defined in Part 3 of the Statutory Corporations Aggregate amount of personal use expenditure $6,317.48 (Liability of Directors) Act 1996) against a liability incurred Aggregate amount of personal use expenditure $4,462.17 under sections 13 or 14 of that Act. settled by due date Aggregate amount of personal use expenditure $1,855.31 Other legal requirements settled after the period required Aggregate amount of personal use expenditure – outstanding at the end of the period Expenditure on advertising, market research, polling Number of referrals for disciplinary action – and direct mail instigated by the notifiable authority during the reporting period In accordance with section 175ZE of the Electoral Act 1907, the department reports incurring expenditure in relation to advertising agencies, market research, polling, direct mail and Act of grace payments media advertising organisations. Total expenditure for 2017/18 was $678,628. The department from time to time processes act of grace payments on behalf of government. Five payments were made in 2017/18, totalling $202,675.

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Table 36 Expenditure on advertising, market research, polling, direct mail and media advertising 2017/18 Advertising $ Market research organisations $ Albany & Great Southern Weekender 90 Market Creations Pty 5,001 Albany Chamber of Commerce 452 Telstra 32 Carnarvon Visitor Centre 123 The Royal Life Saving Society WA Inc. 460 Derby Visitor Centre 600 Total 5,493

Hootsuite 22 Polling organisations $ Katanning Regional Business Association 500 Nil – Pastoralists & Graziers Association of WA 841 Direct mail organisations $ Perth Expo 533 ABCorp Australasia Pty Ltd 498,258 Picton Press 212 Createsend.com.au 978 Poster Passion 521 Grum 12 Promoco 2,060 Kwik Kopy 6,020 RAC Perth Caravan & Camping 2,516 LogMeIn Inc. 1,390 REIWA 345 Magicorp 457 Scott Printing 1,099 Quickmail 1,424 Shutterstock Netherlands 45 Total 508,539

Southern Dirt Incorporated 1,255 State Law Publisher 13,938 Walpole Community Resource Centre 130 Total 25,281

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Table 36 Expenditure on advertising, market research, polling, direct mail and media advertising 2017/18 (continued)

Media advertising organisations $ Adcorp 110,971 Albany Chamber of Commerce 143 Australian Veterinary Association 483 Campaign Monitoring 40 City of Greater Geraldton 15 Dalwallinu Community Resource Centre 123 Denmark Bulletin 250 Facebook 826 Fairfax 3,987 Gumtree 46 Impact Media 3,665 Kimberley Echo 112 Lizart Productions 494 Mia Lacy 46 Micromedia Advertising Design 15,155 NRMjobs.com.au 525 Shire of Wongan – Ballidu 155 West Australian Newspaper 296 West Coast Media 350 Western Regional Newspapers 1,633 Total 139,314

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Disability Access and Inclusion Plan outcomes Raising awareness and celebrating achievements Our department continues to raise awareness and celebrate DPIRD is committed to ensuring clients and staff with disability the achievements of people with disability as part of Disability are able to access our information, services and facilities. Awareness Week and International Day of People with During the year, we developed our inaugural Disability Access Disability. and Inclusion Plan (DAIP) 2018–23, with the nine RDCs We also supported Fishability, a not-for-profit organisation that included under the umbrella of the DPIRD DAIP. The plan, seeks to provide fishing opportunities for people with which was endorsed by Corporate Executive in June 2018, disabilities. recognises the initiatives and achievements of our former departments and the RDCs regarding disability access and Major building works and office upgrades inclusion, and draws on our combined knowledge to ensure we DPIRD regional offices (including Bunbury and Northam) have can continue to meet the needs of people with disability, their undertaken building works to improve disability access, families and carers. including: In accordance with the Disability Services Act 1993 and Schedule 3 of the Disability Services Regulations 2004 our  wheelchair accessibility department is implementing strategies and initiatives that  upgrades to disability car parks achieve seven access and inclusion outcomes identified in  installing a lift at the Bunbury office, providing access to our DAIP 2018–23. the upper level. While the new plan was in development, DPIRD continued to Staff training fulfil the DAIP strategies of our former departments and Our corporate online employee training includes content to RDCs, with key achievements highlighted below. raise awareness about substantive equality, equity and Employment diversity. Our department continued to support employment for people Our Employee Support Network and Human Resource with disability, primarily through the Western Australian Business Partners attended training on grievance handling Disability Enterprises. Intelife and Activ have been contracted and supporting staff, with an emphasis on raising awareness to undertake commercial cleaning and garden and grounds of issues, including mental health. maintenance at our South Perth, Bunbury, Esperance and Geraldton offices.

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Compliance with public sector standards and ethical Table 37 Compliance issues/breach claims codes Breach claims lodged 2016/17* 2017/18^ Compliance issues that arose during 2017/18 regarding public Claims carried over 0 1 sector standards are documented in Table 37. New claims received 8 3 Total claims 8 4 Relevant standard Employment 7 2 Performance management 0 0 Redeployment 0 0 Termination 0 0 Grievance resolution 1 2 Handling of claims Withdrawn in agency 1 0 Resolved in agency 1 1 Still pending in agency 0 0 Referred to Public Sector 6 3# Commission Total claims completed 8 4 *This is the aggregated data from the three former agencies and nine RDCs that were amalgamated through the Machinery of Government change to form DPIRD. ^It should be noted that our department undertook less recruitment activity due to the amalgamation. #No claims were upheld by the Public Sector Commission.

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During 2017/18, eight cases of non-compliance with the Code Recordkeeping Plan of Ethics/Code of Conduct were reported. Five cases were not treated as disciplinary (i.e. resulted in improvement action or In 2017/18, a DPIRD Recordkeeping Plan was approved by no action). As at 30 June 2018, two cases were being the State Records Commission. The Recordkeeping Plan considered for treatment as a disciplinary matter and one provides an accurate account of our department’s case had resulted in a disciplinary investigation. recordkeeping program and will drive continuous improvements in support of organisational activities. Our department’s activities to achieve compliance with public sector standards and ethical codes included: Over the year, training has been provided in live sessions and interactive online courses. In 2017/18, 237 staff attended  the development and implementation of a DPIRD Code of face-to-face training on recordkeeping systems and practices Conduct, conduct guide, discipline procedures and across metropolitan and regional locations. Mandatory grievance policy and procedures corporate induction and recordkeeping awareness courses  the development and communication of organisational were reviewed and re-released for DPIRD in 2018. values, which have been incorporated into a Values and Behaviours Charter, to be launched early in 2018/19 The recordkeeping awareness course provides a structured  implementation of the Employee Support Network – overview of records management and outlines employee roles bringing together and training a group of volunteers to and responsibilities, as well as promulgating DPIRD assist colleagues to resolve issues and grievances Recordkeeping Plan requirements. informally, as well as provide advice on the grievance Additional reporting requirements policy and procedures  a requirement for all staff to undertake an accountable and Additional reporting required under the Fish Resources ethical decision making online course, with a 91% Management Act 1994 and Soil and Land Conservation Act completion rate as at June 2018 1945 is contained in the appendices to this report.  addressing allegations of misconduct in a timely and responsible way.

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Government policy requirements

Substantive equality DPIRD is committed to identifying and eliminating institutional barriers wherever they exist. Substantive equality recognises that while some systems and processes may outwardly appear as non-discriminatory, they may not be fully responsive to the needs and aspirations of different people and groups and, as a result, can unintentionally create further inequalities. Some examples of our department’s commitment to implementing the Public Sector Commission’s Policy Framework for Substantive Equality in 2017/18 included:  hosting a financial management workshop for Vietnamese- speaking vegetable growers as part of our Building Capacity Project with course content delivered in Vietnamese and English  our Aboriginal Business Development project supporting Yandeyarra Pastoral Station in the Pilbara with tailored pastoral production support that has allowed it to independently carry out ongoing property and herd development and work towards creating an Indigenous cattle production supply chain  sponsoring the Inspire Summit that engaged 230 agricultural businesswomen to help develop their skills and networks.

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Occupational safety, health and injury management There are elected OSH representatives across the department and staff members are made aware of their OSH Safety commitment representatives through local OSH induction.

Our department is committed to occupational safety and OSH and injury management health (OSH) and injury management, and is working towards the amalgamation of the OSH management systems of our The injury management system and return-to-work program former departments, including the framework for our safety are documented in the injury management policies and management system, which will comprise policy, procedures, supporting guidelines of our former agencies, and are in the guidelines and a variety of tools such as checklists and process of being consolidated. All current processes are information sheets. compliant with the requirements of the Workers’ Compensation and Injury Management Act 1981. The Corporate Executive team monitors monthly incident and injury statistics and OSH performance reports, participates in Independent accredited consultants carried out a WorkSafe OSH training and supports OSH training for all staff. Plan assessment of OSH systems for the two largest of our former departments. The Department of Agriculture and Food, Safety system Western Australia (DAFWA) was provided a WorkSafe Plan score of 77% in 2013 and the Department of Fisheries 60% in Our department has endorsed a two-tier system of 2015. Additionally, DAFWA underwent a health and safety management in accordance with the Occupational Safety and framework assessment of OSH management systems and Health Act 1984 for implementation in early 2018/19. The top culture by an external consultant for its Audit and Integrity tier is a Strategic OSH Committee that comprises OSH branch in 2015. Of the WorkSafe Plan audit recommendations representatives and managers of the main risk groups, and for DAFWA, 100% are complete. Our department is this group is responsible for policy approval, developing OSH progressing with the recommendations to the Department of strategy and for monitoring OSH performance. The second Fisheries, with 61% of the high-risk recommendations tier comprises local workplace OSH committees that consider complete, and plans for the new Strategic OSH Committee to incident, hazard and inspection reports and actions raised by monitor progress on the remaining actions. the policy committee.

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Performance Table 38 outlines our performance against key indicators for occupational safety, health and injury management. Table 38 Occupational safety, health and injury management performance against key indicators RDCs are included in the previous and base year data in accordance with the PSC Annual Reporting Framework 2017/18, to reflect the Machinery of Government change that transitioned staff of the RDCs into DPIRD. RDCs are required to report separately in their respective 2017/18 annual reports. Measures Former agencies Results for former Results, targets and commentary for DPIRD agencies* Results Results Results Targets Comments on 2015/16 2016/17 2017/18 progress towards targets Number of fatalities Department of Agriculture 0 0 0 0 Target achieved and Food, Western Australia (DAFWA) Department of Fisheries 0 0 Department of Regional 0 0 Development Gascoyne Development 0 0 Commission Goldfields-Esperance 0 0 Development Commission Great Southern 0 0 Development Commission Kimberley Development 0 0 Commission Mid West Development 0 0 Commission

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Measures Former agencies Results for former Results, targets and commentary for DPIRD agencies* Results Results Results Targets Comments on 2015/16 2016/17 2017/18 progress towards targets Peel Development 0 0 Commission Pilbara Development 0 0 Commission South West Development 0 0 Commission Wheatbelt Development 0 0 Commission Lost time injury and DAFWA 0.62 0.51 0.54 0 or 10% Not achieved. disease incidence rate Department of Fisheries 0.21 0.15 reduction in Target measure is not incidence Department of Regional 0 0 directly comparable rate Development due to amalgamation. Gascoyne Development 9.0 0 Commission Goldfields-Esperance Information not available Development Commission in annual reports Great Southern 0 0 Development Commission Kimberley Development 0 0 Commission Mid West Development 0 0 Commission Peel Development 0 0 Commission

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Measures Former agencies Results for former Results, targets and commentary for DPIRD agencies* Results Results Results Targets Comments on 2015/16 2016/17 2017/18 progress towards targets Pilbara Development 0 0 Commission South West Development 0 0 Commission Wheatbelt Development 0 0 Commission Lost time injury and DAFWA 33.3 20.0 0% 0 or 10% Target achieved disease severity rate Department of Fisheries 0 0 reduction in severity Department of Regional 0 0 rate Development Gascoyne Development 0 0 Commission Goldfields-Esperance Information not available Development Commission in annual reports Great Southern 0 0 Development Commission Kimberley Development 0 0 Commission Mid West Development 0 0 Commission Peel Development 0 0 Commission Pilbara Development 0 0 Commission

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Measures Former agencies Results for former Results, targets and commentary for DPIRD agencies* Results Results Results Targets Comments on 2015/16 2016/17 2017/18 progress towards targets South West Development 1 0 Commission Wheatbelt Development 0 0 Commission Percentage of injured DAFWA 75% 82% 100% Greater Target achieved workers returned to work Department of Fisheries 66.67% 100% than or (i) within 13 weeks equal to Department of Regional NA NA 60% Development Gascoyne Development 100% NA Commission Goldfields-Esperance Information not available Development Commission in annual reports Great Southern NA NA Development Commission Kimberley Development NA NA Commission Mid West Development 0 NA Commission Peel Development NA NA Commission Pilbara Development NA NA Commission South West Development NA NA Commission

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Measures Former agencies Results for former Results, targets and commentary for DPIRD agencies* Results Results Results Targets Comments on 2015/16 2016/17 2017/18 progress towards targets Wheatbelt Development NA NA Commission Percentage of injured DAFWA 82% 55% NA Greater Target achieved workers returned to work Department of Fisheries 0 NA than or (ii) within 26 weeks equal to Department of Regional NA NA 80% Development Gascoyne Development NA NA Commission Goldfields-Esperance Information not available Development Commission in annual reports Great Southern NA NA Development Commission Kimberley Development NA NA Commission Mid West Development 0 NA Commission Peel Development NA NA Commission Pilbara Development NA NA Commission South West Development NA NA Commission Wheatbelt Development NA NA Commission

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Measures Former agencies Results for former Results, targets and commentary for DPIRD agencies* Results Results Results Targets Comments on 2015/16 2016/17 2017/18 progress towards targets Percentage of managers DAFWA 99% 99% 64% Greater Not achieved. trained in occupational Department of Fisheries 95% 100% than or Staff who were safety, health and injury equal to Department of Regional 79% 70% employed by RDCs management 80% Development prior to their responsibilities Gascoyne Development 70% 70% disposition did not Commission have the same training records or access to Goldfields-Esperance Information not available training, which has Development Commission in annual reports affected this year’s Great Southern 50% 50% result. Development Commission Kimberley Development 50% 50% Commission Mid West Development 0% 0% Commission Peel Development 66% 66% Commission Pilbara Development 33% 40% Commission South West Development 20% 25% Commission Wheatbelt Development 0% 0% Commission *Data from prior years is replicated exactly from previously published annual reports, as required for amalgamated departments.

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Government building training policy The department does not enter into building and construction contracts; these are managed by the Department of Finance, Building Management and Works, on our behalf and will therefore be reported on in their annual report. Minor maintenance work may be contracted in the regions but these contracts would be below the $2 million threshold.

Board and committee remuneration DPIRD supports 11 government boards or committees. These bodies provide essential services and advice in regards to fish resource allocation, the ethical use of animals in science, biosecurity policy and the management of industry funding schemes (IFS). Total remuneration across all boards for 2017/18 was $178,768.

Table 39 Integrated Fisheries Allocation Advisory Committee Position Name Type of Period of membership Gross remuneration From To remuneration Chair I Longson Per month Jul-2017 Nov-2017 $7,844 Member N Halse Per month Jul-2017 Nov-2017 $4,706 Member S Lodge Per month Jul-2017 Nov-2017 $4,706 Member E Woods Per month Jul-2017 Nov-2017 NA Total $17,256

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Table 40 Animal Ethics Committee Position Name Type of Period of membership Gross remuneration From To remuneration Chair Dr B Mullan Per meeting Jul-2017 Feb-2018 NA Member Dr K Kelman Per meeting Jul-2017 Jun-2018 $2,205 Member Prof I Robertson Per meeting Jul-2017 Jun-2018 $2,573 Member S Vanstan Per meeting Jul-2017 Jun-2018 $2,573 Member R Moore Per meeting Jul-2017 Jun-2018 $2,205 Member S Leitch Per meeting Jul-2017 Jun-2018 $1,838 Member G Mabury Per meeting Jul-2017 Jun-2018 $2,573 Total $13,967

Table 41 Biosecurity Council of Western Australia Position Name Type of Period of membership Gross remuneration From To remuneration Chair K Goss Per fortnight Jul-2017 Feb-2018 $18,107 Member/Chair S McKirdy Per fortnight Jul-2017 Jun-2018 $18,349 Member M Allen Per fortnight Jul-2017 Jun-2018 $13,656 Member D Jarvie Per fortnight Jul-2017 Feb-2018 $9,087 Member T Thorne Per fortnight Jul-2017 Jun-2018 $13,656 Member B Large Per fortnight Jul-2017 Feb-2018 $9,087 Member C Winfield Per fortnight Jul-2017 Feb-2018 $9,087 Member R Flugge Per fortnight Mar-2018 Jun-2018 $4,570 Member J Mackenzie Per fortnight Mar-2018 Jun-2018 $4,570 Total $100,169

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Note that IFS committees are industry funded. Member contributions are collected by industry and these funds are managed by our department. Table 42 Cattle IFS Management Committee Position Name Type of Period of membership Gross remuneration From To remuneration Chair S Meerwald Per meeting Jul-2017 Jun-2018 $980 Member C Forsyth Per meeting Jul-2017 Jun-2018 $960 Member R Paliskis Per meeting Jul-2017 Jun-2018 $0 Member W Brockhurst Per meeting Jul-2017 Jun-2018 $960 Member J Motter Per meeting Jul-2017 Jun-2018 $640 Member G Nixon Per meeting Jul-2017 Jun-2018 $960 Member M Norton Per meeting Jul-2017 Jun-2018 $960 Total $5,460

Table 43 Grains, Seed and Hay IFS Management Committee Position Name Type of Period of membership Gross remuneration From To remuneration Chair/Member R Creagh Per meeting Jul-2017 Jun-2018 $1,280 Member S Woods Per meeting Jul-2017 Jun-2018 $1,280 Member R Day Per meeting Jul-2017 Jun-2018 $1,280 Member R Beard Per meeting Jul-2017 Jun-2018 $1,280 Member A Mutter Per meeting Jul-2017 Jun-2018 $640 Member B Jones Per meeting Jul-2017 Jun-2018 $640 Member/Chair J Sullivan Per meeting Jul-2017 Jun-2018 $1,960 Total $8,360

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Table 44 Sheep and Goat IFS Management Committee Position Name Type of Period of membership Gross remuneration From To remuneration Chair E Rogister Per meeting Jul-2017 Jun-2018 $1,960 Member J Jensen Per meeting Jul-2017 Jun-2018 $980 Member D England Per meeting Jul-2017 Nov-2017 $640 Member S McGuire Per meeting Jul-2017 Jun-2018 $2,560 Member J Moyes Per meeting Jul-2017 Jun-2018 $960 Member C Wass Per meeting Jul-2017 Jun-2018 $1,280 Member G Bowen Per meeting Jul-2017 Jun-2018 $1,280 Total $9,660

Table 45 IFS Appointments Committee Position Name Type of Period of membership Gross remuneration From To remuneration Chair R Gillam Per meeting Jul-2017 Apr-2018 $270 Member W Cox Per meeting Jul-2017 Apr-2018 $0 Member T Fisher Per meeting Jul-2017 Apr-2018 $180 Member A York Per meeting Jul-2017 Apr-2018 $0 Member A Seabrook Per meeting Jul-2017 Apr-2018 $0 Chair/Member I Longson Per meeting Jul-2017 Jun-2018 $11,256 Member C Bowen Per meeting Jul-2017 Jun-2018 $11,520 Member J Jarvis Per meeting Jul-2017 Jun-2018 $670 Total $23,896

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The following committees did not convene during the year. Table 46 South Coast Herring G-trap Voluntary Fisheries Adjustment Scheme Committee Position Name Type of Period of membership Gross remuneration From To remuneration Chair R Donald Per meeting Jul-2017 Jun-2018 $0 Member K Webber Per meeting Jul-2017 Jun-2018 $0 Member K Tocas Per meeting Jul-2017 Jun-2018 $0 Member B Mezzatesta Per meeting Jul-2017 Jun-2018 NA

Table 47 Cattle Industry Funding Scheme Review Panel Position Name Type of Period of membership Gross remuneration From To remuneration Chair H Cowan Per meeting Jul-2017 Jun-2018 $0 Member A Cleland Per meeting Jul-2017 Jun-2018 $0 Member C Richardson Per meeting Jul-2017 Jun-2018 $0

Table 48 Sheep and Goat Industry Funding Scheme Review Panel Position Name Type of Period of membership Gross remuneration From To remuneration Chair C Richardson Per meeting Jul-2017 Jun-2018 $0 Member T De Landgrafft Per meeting Jul-2017 Jun-2018 $0 Member R Coole Per meeting Jul-2017 Jun-2018 $0

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Table 49 Grains, Seeds and Hay Industry Funding Scheme Review Panel Position Name Type of Period of membership Gross remuneration From To remuneration Chair R Sewell Per meeting Jul-2017 Jun-2018 $0 Member D Clauson Per meeting Jul-2017 Jun-2018 $0 Member D Kelly Per meeting Jul-2017 Jun-2018 $0

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Appendices

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Appendix 1: Statement from the Commissioner of Soil and Land Conservation

A report on the Commissioner’s operations for 2017/18 is  The ecological sustainability of the rangelands is not submitted in accordance with Section 25 F of the Soil and adequately protected. Land Conservation Act 1945 (the Act).  Development of a lease level monitoring system and a rigorous compliance system is recommended. Delegations Salinity The Commissioner continues to have delegated authority from  Managing dryland salinity is a shared responsibility and the Minister for the Environment to issue woodchip permits. effectiveness relies upon coordinated local action.  The lack of strategic direction and coordination identified. Auditor General’s performance audits  The State does not have all the information (extent and rate of change) it needs to effectively manage salinity. During the year, the Commissioner assisted the Office of the Auditor General with two inquiries. Performance audit reports The Commissioner and DPIRD are working with the relevant for the sustainable management of the State’s rangelands and partner agencies to develop and implement coordinated salinity were tabled in Parliament by the Auditor General in responses to these audit reports by the end of 2019. October 2017 and April 2018 respectively. Implementation will require allocation of additional resources to these areas. These findings are consistent with previous reviews and reflect the level of department resources available for land management regulation. Land clearing assessments The Auditor General’s key findings and recommendations Fifty-four clearing area and purpose permit applications were relevant to the Commissioner were: assessed for land degradation, with advice provided to the Department of Water and Environmental Regulation for Rangelands agriculture-purpose clearing or to other agencies for mining-  Management of the State’s rangelands is a responsibility related and infrastructure development. shared with the Department of Planning, Land and Heritage, Pastoral Lands Board, DPIRD and the Commissioner.

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Compliance Soil conservation notices The Commissioner registered and investigated 17 complaints During the year, one soil conservation notice was issued to during the year with eight being soil erosion issues, five destock a property subject to severe soil erosion and one soil related to drainage, three to flooding and one to clearing. A conservation notice reviewed under s. 38 was discharged. nutrient export complaint registered at the end of 2016/17 was This notice also has an application for review by the State also inspected and satisfactorily resolved during the year. At Administrative Tribunal under s. 39 pending. 30 June 2018, four erosion complaints are pending further monitoring of compliance with directions given. Land drainage Farmer interest in constructing deep drains for the Woodchip permits management and recovery of salt-affected land remains at an historically low level. During 2017/18, only six landholders No woodchip permits were issued. submitted Notices of Intention to Drain (NOI). Of these, five were issued letters of ‘no objection’ and one a ‘letter of Agreements to reserve and conservation covenants objection’ to the proposed works. During the year, one conservation covenant protecting 12ha in Pre-NOI inspections to assist farmers with problem definition perpetuity was finalised with the memorial registered on the and possible treatment options for waterlogging and salinity certificate of title. A further eight irrevocable conservation were carried out on eight properties in the Great Southern and covenants in perpetuity that protect 504.5ha of vegetation set south eastern Wheatbelt. aside for environmental offsets were developed and/or executed and are pending lodgement at Landgate by the Land Conservation District Committees (LCDCs) proponents. A total of 1822* instruments under the Act remain LCDCs are statutory committees created under Part IIIA of the registered on certificates of title protecting 161,375.9ha* of Act to manage projects and to promote practices that mitigate native and planted vegetation. or prevent land degradation. At the year’s close, there were *Corrected figure from 2017 193 gazetted members of 16 LCDCs active in the agricultural and rangeland regions of the State. Twelve committees are pending reappointment, 25 are in ‘recess’ and 99 have been abolished. A key emerging issue is the denial of LCDCs’ access to Commonwealth funds in 2018 due to changed eligibility criteria for environmental project grants.

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Condition of the resource base Soil salinity Salinity has a serious impact on agriculture and offsite natural Agricultural region assets. When the last assessment of salinity extent (Landsat) was carried out in 1998, more than one million hectares of Agriculture is largely confined to the South West Land Division farmland were severely salt affected and more than 2.8 million in WA. Productivity is dependent upon the condition and the hectares were at risk due to shallow saline water tables. The inherent limitations of the soil resource. Agricultural soils are economic impact for the period 2009–13 was estimated to be susceptible to salinisation, acidification, soil erosion, water $519 million per annum or 7% of GVAP (Bennett, A. pers. repellence and compaction. Waterways and wetlands are also comm., Oct 2015) while off-site costs are estimated to be susceptible to acid groundwater discharge, salinity, nutrient greater (Simons, George and Raper 2013). export and sedimentation from agricultural land. The combination of soil constraints, climate variability and The network of monitoring bores established throughout the increasing production costs is significantly impacting farm agricultural region identify hydrozones where the risk of viability on the margins of the Wheatbelt. further salinity expansion is high – Dandaragan plateau, East Binnu sandplain, Arrowsmith, east of the Gingin scarp, Soil acidity Esperance Sandplain and SW Zone of Ancient Drainage. Increasing soil acidity affects much of the State’s agricultural In recent years, monitoring effort was reduced in line with land and is the most serious, long-term preventable land departmental resources. Targeted bore monitoring indicates degradation threat to the State’s crop and pasture production. that rising groundwater trends still dominate in the SW Zone Except the Esperance mallee district, most agricultural land is of Ancient Drainage, Dandaragan Plateau, Arrowsmith, east in either poor or very poor condition from a soil acidity of the Gingin scarp and the Esperance sandplain. perspective (Schoknecht et al. 2013). The economic impact of The salinity risk for the East Binnu sandplain has been better soil acidity was estimated to be about $1500 million per annum defined following an airborne electromagnetic study. or about 20% of gross value of annual production (GVAP) (Bennett, A. pers. comm., Oct 2015; Peterson, E 2015). In Last year, widespread heavy summer rainfall exacerbated 2017/18 farmers applied an estimated 1.231 million tonnes of rising groundwater trends in eight hydrozones. Recent lime (Gazey, C. pers. comm., Aug 2018). This level is similar to monitoring indicates rates of groundwater rise appear to have last year but about 230,000 tonnes lower than previous years. returned to long-term values, following below average rainfall to 30 June 2018. The current level of lime application is about 50% of the estimated annual requirement to raise soil pH to desirable levels over the next 10 years.

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Soil erosion In 2017/18, 2429 soil samples were collected from farm Water erosion is generally episodic and caused by localised, paddocks under the Regional Estuaries Initiative and high-intensity rainfall over the summer and autumn/early Restoring Geographe Waterways project in the Peel, winter period. Damage is greatest where protective vegetative Leschenault, Lower Blackwood, Vasse Geographe, Scott cover has been removed by burning, cultivation or heavy River, Oyster Harbour and Wilson Inlet catchments. Of these, grazing pressure. 74% of samples had soil phosphorus (P) concentrations in excess of pasture growth requirements and 87% had soil As previously reported, the frequency of intense summer acidity problems. The sampling also identified that potassium rainfall events appears to be increasing in the eastern and and sulphur deficiency were also reducing productivity. south eastern Wheatbelt where five events of between 1:50 or 1:100 year annual exceedance probability have occurred There is a high level of confidence with these findings. Since during the past 20 years. 2009, under this program, some 17,500 soil samples have been collected from 813 farms covering 197,000ha. Inappropriate cultivation of waterways and some controlled traffic cropping practices were identified as factors The cost of excess farm fertilisers applied in the south-west contributing to the severe soil erosion observed in 2017. agricultural area was estimated at $400 million per annum (Weaver and Summers 2013). Remote sensed cover data indicate that in April 2018, 1.22 million hectares had less than 50% cover with some eastern Wheatbelt shires having more than 30% of land at risk Pastoral rangelands of wind erosion. The dry autumn exacerbated this risk. WA’s rangelands cover 87% of the State, with pastoral leases Widespread wind erosion was reported over the 2017/18 covering about 35% (874,000km2) with Unallocated Crown summer–autumn and early winter period. Contributing factors Lands (UCL) plus land vested for conservation and include cultivation, burning, grazing management and low Indigenous purposes making up the balance. Following the carryover cover levels from the 2017 season. An integrated 2015 lease renewal process, there are 435 registered pastoral farming systems response is needed to address this issue. stations on 490 pastoral leases. There are 152 stations in the Rivers and wetlands northern rangelands with 92 in the Kimberley, 60 in the Pilbara and 283 stations located in the southern rangelands Diffuse nutrient pollution from agriculture has serious offsite (shrublands). environmental impacts. It is a serious long-term land degradation problem of sandy soils of the coastal estuary catchments where the level of historically applied phosphorus fertiliser now exceeds current production requirements.

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Rangeland resource condition assessment Rainfall in the Pilbara is highly variable and the long-term Rangeland condition assessment in the Kimberley and much average summer rainfall is about one-third of that received in of the Pilbara is based on the frequency of perennial grasses. the Kimberley. The density of perennial shrubs is used to determine condition Rainfall in the arid southern shrublands is also highly variable. in the southern rangelands. The key drivers for change in In 2017, 76% of WARMS sites experienced below-average resource condition are seasonal conditions, grazing pressure seasonal quality. This contrasts with 2016, when 94% of and fire. WARMS sites experienced average or above average seasonal quality. Significantly, in 2017 the average winter The Western Australian Rangeland Monitoring System (WARMS) was established between 1993 and 1999 to rainfall across this region was 55mm (49% of the long-term monitor rangeland condition trend at a regional scale. There average of 114mm). are 1612 sites – 629 in grassland and 983 in shrubland. Table A1 Seasonal quality* by region for WARMS sites in Grassland and shrubland sites are assessed on a three-yearly 2017/18 and six-yearly cycles respectively. Region Above average Average Below average In 2017, 384 sites were assessed on 85 stations in the (%) (%) (%) Kimberley, Pilbara and shrublands Land Conservation Kimberley 85 15 0 Districts (LCDs). Pilbara 36 61 3 Seasonal conditions Southern 7 17 76 Seasonal quality is an estimate of the effectiveness of the *Seasonal quality is estimated from the long-term average rainfall received at WARMS sites. and seasonality of rainfall received. The long run of favourable seasonal conditions experienced in the Kimberley continued. In 2017/18, seasonal conditions were average to well above average (Table A1). Summer rainfall was highest in the Broome LCD (1334mm, long-term average 472mm) and above average in the Halls Creek-East Kimberley LCD (564mm, long-term average 541mm). In the Pilbara, 97% of sites were above average or average, with a small number of sites near the coast again experiencing below-average seasonal conditions.

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Plant trends The largest increases in undesirables were observed in the Wiluna (+128%) and Kalgoorlie (+120%) LCDs. Northern rangelands In 2017, WARMS assessment cycle 8 was completed. Site Cost of rangeland degradation assessments were carried out in the De Grey, Derby West The published inventory and condition surveys of the pastoral Kimberley, East Pilbara, Halls Creek-East Kimberley and districts indicate that land degradation has reduced carrying Lyndon LCDs. capacity by about 27%. Analysis of these data suggests that The data indicate that the frequency of desirable perennial in aggregate, an average opportunity cost of land degradation grasses on most WARMS sites was stable. North Kimberley was around $145,000 per annum per pastoral business and East Pilbara LCDs recorded increases of 5% and 4% (Bennett, A. pers. comm., Oct 2015). Rangeland degradation respectively while Roebourne LCD recorded the largest seriously undermines pastoral business viability and has decline of 5%. ongoing impacts unless adequately managed.

Southern rangelands Conclusions The fifth WARMS assessment cycle commenced in 2016 and by 30 June 2018, 381 sites in six LCDs had been completed. The monitoring data continue to point to critical areas where Analysis of this data-set indicates variable trends in the land degradation is impacting the sustainability of our density of desirable shrubs since 2010–15. Modest increases agricultural industries: were observed in four LCDs and a 21% decline recorded in  Subsoil acidity is widespread and has a very significant Lyndon LCD. economic impact. Long-term security of access to coastal In the same period, the average density of undesirable and lime resources remains a high priority for agriculture. intermediate shrub species on the WARMS sites assessed  On-farm nutrient mapping again highlights widespread also increased by 49% and 17% respectively. The increase in inappropriate fertiliser management on the Coastal Plain undesirable shrub density was most notable in the Wiluna and and South West impacts farm profitability as well as North Eastern Goldfields LCDs with 141% and 36% causing significant offsite land degradation respectively. (eutrophication).  Although the current extent of salinity is unknown, bore Since monitoring began in 1994 (for this subset of sites) the monitoring indicates that the salinity risk is high in six density of desirable shrubs has decreased 8%, while hydrozones in the South West Agricultural Region. undesirable shrubs increased 46% and intermediates 23%.

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Continued expansion is likely in catchments where Reference list clearing occurred in the past three-to-four decades.  Large-scale wind erosion now occurs regularly in the Peterson, E 2015, Economic analysis of the impacts and South West Agricultural Region where plant cover is management of subsoil constraints, Department of Agriculture reduced. Water erosion is insidious and tends to be and Food, Western Australia, Perth episodic. The frequency of severe unseasonal rainfall Schoknecht, N, Bicknell, D, Ruprecht, R, Smith F and events has increased over the past 20 years. Increased Massenbauer A (eds.) 2013, Report card on sustainable soil erosion points to farming systems failure. natural resource use in agriculture, Department of Agriculture  In the Kimberley and Pilbara LCDs, rangeland condition and Food, Western Australia, Perth trend remains stable or improving in response to Simons, J, George, R and Raper, P 2013, ‘Dryland salinity’, favourable seasonal conditions. In: Report card on sustainable natural resource use in  In the shrublands, variable condition trends were agriculture, Department of Agriculture and Food, Western observed, with modest increases in desirable shrubs in Australia, Perth four of the six LCDs assessed. The previously reported increases in undesirable shrubs since WARMS monitoring Weaver, D and Summers, R 2013, ‘Nutrient status began in 1994 was again observed in 2017 and points to (phosphorus)’, In: Report card on sustainable natural resource declining resource condition. use in agriculture, Department of Agriculture and Food, Western Australia, Perth Andrew Watson Commissioner of Soil and Land Conservation

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Appendix 2: Breeding stock status, catch and effort ranges for Western Australia’s major commercial and recreational fisheries

The information in this appendix underpins the four audited key Commercial ranges 'under revision' or 'under development' are performance indicators measuring the effectiveness of the not assessed. Recreational ranges 'not developed' or 'under department’s management plans and regulatory activities in: revision' are not assessed however 'not formal' ranges are assessed.  ensuring the sustainability status of the State’s aquatic resources  the success of keeping fish catches (or effort) at appropriate Acronyms levels for commercial and recreational fisheries  NA – Not applicable  ensuring that sustainably managed commercial fisheries  Q – Quota management provide benefits to the State as a result of significant local  TAC – Total Allowable Catch sales and export earnings from fish and fish products.  TACC – Total Allowable Commercial Catch  TARC – Total Allowable Recreational Catch More detailed information can be viewed in the Status Reports  MSC – Certified by Marine Stewardship Council of the Fisheries and Aquatic Resources of Western Australia  CI – Confidence interval (State of the Fisheries).  se – standard error The term ‘sustainable' is given where the breeding stocks are considered adequate as well as breeding stocks that are Assessment level (and method) recovering. Terms 'inadequate' or ‘environmentally limited’  Level 1 – Catch data and biological/fishing vulnerability include where additional actions need to be taken or  Level 2 – Level 1 plus fishery-dependent effort confirmation is required to ensure the breeding stocks are  Level 3 – Levels 1 and/or 2 plus fishery-dependent either adequate or are now recovering. The term ‘overfished’ biological sampling of landed catch (e.g. average size, is only given where breeding stocks are inadequate due to fishing mortality, etc. estimated from representative exploitation (i.e. overfishing) that have been identified but for samples) which definitive management actions have yet to be fully  Level 4 – Levels 1, 2 or 3 plus fishery-independent surveys implemented. of relative abundance, exploitation rate, recruitment An acceptable catch or effort range may be determined for each  Level 5 – Levels 1 to 3 and/or 4 plus outputs from of the major commercial and recreational fisheries. integrated simulation, assessment model.

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Table A2 Breeding stock status, catch and effort ranges for Western Australia’s major commercial and recreational fisheries Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed West Coast Bioregion West Coast Level 5 Sustainable: Commercial: Commercial: Acceptable Rock Adequate 6300 tonnes (TACC) 6400t Commercial: Catch exceeded Lobster Recreational: Recreational: TACC due to water loss (+1.5%). (MSC) 480t (TARC) 272–400t Egg production above threshold level. Recreational: Catch within acceptable range. Review of methods used for estimating recreational catch is underway. Roe’s Level 4 Sustainable: Commercial: Commercial: Acceptable Abalone Adequate 79t (Q) 49t Commercial: Catch was below (530–640 days) (404 days) TACC due to low catches in Recreational: Recreational: regional areas resulting from 18–22t Perth metro area 23–27t Perth metro area; economic and accessibility 14t Other issues. Recreational: Perth metro catch was above acceptable range due to larger size of abalone taken.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed Octopus Level 2 Sustainable: Commercial: Commercial: Acceptable Adequate 200–500t 257t Commercial: Catch within Recreational: Recreational: acceptable range. The Not developed 1t (95% CI, boat only, top commercial fishery is in a 10 species) planned expansion phase. Recreational: Catch levels are not considered a risk to stocks. Abrolhos Level 4 Sustainable: Commercial: Commercial: Acceptable Islands and Adequate 95–1830t 651t Catch within acceptable range. Mid West Recreational: In 2016/17, recruitment stock Trawl NA levels in parts of the Abrolhos Islands improved and the fishery opened in 2017 after being closed for five years. Cockburn Level 4 Sustainable: Commercial: Commercial: NA Sound Crab Recovering Under revision 0t The fishery has been closed Recreational: Recreational: since April 2014. In 2017, the Under revision 0t juvenile recruitment improved but remained below the limit reference level and the egg production index declined below the threshold.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed Peel-Harvey Level 2 Sustainable: Commercial: Commercial: Acceptable West Coast Adequate 45–105t 55t Commercial: Catch and catch Crab (MSC) Recreational: Recreational rates within acceptable ranges. Not formal West Coast 36–50t Recreational: Catch levels are (95% CI, boat only, top not considered a risk to stocks. 10 species) West Coast Level 3 Sustainable: Commercial: Commercial: NA Nearshore Adequate – Peel-Harvey: 46–166t Peel-Harvey: 139t 2017 herring assessment and Mullet/ Herring: Under revision Herring statewide: 87t indicates stock is rebuilding. Estuarine Whiting Whitebait: 60–275t Whitebait: 19t Metro Zone garfish fishery Finfish Sustainable: Recreational: Other: 51t closed in 2017. Decline in (partly MSC) Recovering – Not developed Recreational: whitebait consistent with an Herring/ 58–77t (95% CI, boat environmental limited stock as a Southern only, top 10 species) result of the 2011 heat wave. Garfish Stocks require a review of Inadequate – acceptable catch ranges. Whitebait West Coast Level 1 Sustainable: Commercial: Commercial: Acceptable Purse Seine Adequate 0–3000t (Q) 1097t (all species) Catch for all zones within Recreational: acceptable ranges. NA

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed West Coast Annual: Sustainable: Commercial: Commercial: Commercial: Acceptable Demersal Level 1 Recovering <450t 248t Commercial: Demersal suite Scalefish Periodic: Recreational: Recreational: catch within range. Level 3 <250t 193–230t (95% CI, boat Recreational: Not acceptable only, top 10 species) 56t (charter) Recreational: Snapper catch was above recovery benchmark. Level 3 assessment completed in 2017. Gascoyne Coast Bioregion Shark Bay Level 4 Sustainable: Commercial: Commercial: Acceptable Prawn Adequate 1350–2150t 1608t Western king and brown tiger (MSC) Recreational: prawn catches within acceptable NA ranges. Exmouth Level 4 Sustainable: Commercial: Commercial: Acceptable Gulf Prawn Adequate 771–1276t 713t Brown tiger and endeavour (MSC) Recreational: prawns catches within NA acceptable ranges. Western king prawn catch below acceptable range but spawning stock above threshold.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed Shark Bay Level 4 Sustainable: Commercial: Commercial: Acceptable Scallop Adequate Trial quota 1650t 1632t Catch: Achieved trial quota for Recreational: Denham Sound and northern NA Shark Bay stocks. Most recent survey identified further improved recruitment for both stocks. Shark Bay Level 4 Sustainable: Commercial: Commercial: Acceptable Crab Adequate 450t (Q) 443t Commercial: Achieved quota. Recreational: Shark Bay Crab fishery is now Not developed considered fully recovered. Stock continues to improve under the current favourable environmental conditions. Recreational: Catch levels are not considered a risk to stocks. Shark Bay Annual: Sustainable: Commercial: Commercial: Acceptable Beach Level 2 Adequate 235–335t 156t Catch below the acceptable Seine and Periodic: Recreational: range due to ongoing low levels Mesh Net Level 3 Not developed of effort. Catch rates for whiting and yellowfin bream above the 10-year average. Level 3 assessment completed in 2014 for yellowfin whiting.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed West Coast Level 2 Sustainable: Commercial: Commercial: Acceptable Deep Sea Adequate 154t (Q); 153.7t TAC achieved with effort within Crab (MSC) 60,000–105,000 pot lifts (86,000 pot lifts) acceptable range. The Recreational: standardised catch rate of NA retained legal crabs is within the acceptable range. Gascoyne Annual: Inadequate Commercial: Commercial: Snapper: Not Acceptable Demersal Level 2 Snapper – 277t (Q) Snapper 133t Other demersals: Acceptable Scalefish Periodic: Other demersals – 227t Other demersals 144t (Q) Snapper spawning biomass is Level 5 Recreational: around the limit level with Recreational: 87–118t (95% CI, boat additional management action Not formal only, top 10 species) undertaken during 2018. Management for other demersals adequate. Level 5 assessment completed in 2017. Inner Shark Periodic: Sustainable: Commercial: 3.8t Eastern Commercial: 3t Acceptable Bay Level 5 Adequate Gulf (EG), 3.8t Denham Recreational: Recreational: Catch within Demersal Sound (DS), 1.2t 3t EG (95% CI 0.3–7t), acceptable range. (snapper) Freycinet Estuary (FE) 5 t DS (95% CI 1–14t), Commercial: Incidental catch. Recreational: 3t FE (95% CI 1–6t) Not considered a risk to stocks. 11.2t EG, 11.2t DS, 3.8t (boat only) FE Level 5 assessment completed in 2015.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed North Coast Bioregion Onslow Level 1 Sustainable: Commercial: Negligible NA Prawn Adequate 60–180t Minimal fishing occurred in 2017. Recreational: NA Nickol Bay Level 1 Sustainable: Commercial: 227t Acceptable Prawn Adequate 90–300t Catch within acceptable range. Recreational: Record high catch not seen NA since 2006. Broome Level 1 Sustainable: Commercial: Negligible NA Prawn Adequate 55–260t Minimal fishing occurred in 2017. Recreational: NA Kimberley Level 1 Sustainable: Commercial: Commercial: Acceptable Prawn Adequate 240–500t 269t Banana prawn catch within Recreational: acceptable range. NA North Coast Level 2 Sustainable: Commercial: Commercial: Acceptable Nearshore Adequate 33–45t (barramundi) 50t (barramundi) Commercial: Catch above and Recreational: 77t (total) acceptable range. The catch is Estuarine Not formal Recreational: similar to 2016 and the catch Finfish 20–35t (95% CI, boat rate remains high. only, top 10 species) Recreational: Catch levels are not considered a risk to stocks.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed Northern Annual: Sustainable: Commercial: Commercial: NA Demersal Level 2 Adequate Under revision 1317t (total) Commercial: Goldband snapper Scalefish Periodic: Recreational: 473t (goldband snapper and red emperor catches are Level 5 Not Formal – not including other within their longer-term ranges. jobfish) 138t (red emperor) Recreational: Catch levels are not considered a risk to stocks. Recreational: 34–47t (95% CI, boat Recreational catches are only, top 10 species) combined for Kimberley and Pilbara. See below for Pilbara fish trawl and demersal trap and line. Level 5 assessment completed in 2015. Pilbara Fish Level 2, 3 & Sustainable: Commercial: Commercial: NA Trawl 5 Adequate Under revision 1780t Full assessment is in progress Recreational: and the catch range is under NA review. Pilbara Level 2, 3 & Sustainable: Commercial: Commercial Acceptable Demersal 5 Adequate 400–600t (trap) 573t (trap) Trap fishery catch within Trap and 50–115t (line) 143t (line) acceptable range. Line catch Line Recreational: marginally above acceptable NA range.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed Mackerel Level 1 Sustainable: Commercial: Commercial: Acceptable Adequate 246–410t (Q, Spanish 283t Commercial: Catch within Mackerel) Recreational: acceptable range since the Recreational: 21–31t (95% CI, boat management plan was Not formal only, top 10 species) introduced. Recreational: Catch levels are not considered a risk to stocks. Northern No NA <20t 0 NA Shark assessment (sandbar) No fishing since 2008/09. Pearl Oyster Level 3 Sustainable: Commercial: Commercial: Acceptable Adequate 612,550 oysters (Q) 468,573 oysters Catch below quota as vessels (14,071–20,551 dive (12,845 dive hours) switched to seeding operations. hours) Catch rates increased from 2016 Recreational: to 2017. Abundance predicted to NA increase slightly in 2018.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed Sea Level 2 Sustainable: Commercial: Commercial: Acceptable Cucumber Adequate Sandfish (Kimberley) Sandfish (Kimberley): 21t Catch within acceptable range. 0–100t Sandfish (Pilbara): 33t Sandfish (Pilbara) Redfish: 81t Catch rates for sandfish and 0–80t redfish above the target Redfish 0–150t reference levels. New stock of sandfish accessed in Pilbara. Recreational: Main redfish stocks targeted this NA year due to planned rotational harvest schedule by industry.

South Coast Bioregion South Coast Level 2 Sustainable: Commercial: Commercial: Not Acceptable Crustacean Adequate 50–80t (southern rock 39t (southern rock Catch below acceptable range. lobster) lobster) Southern rock lobster stock Recreational: indicator below the threshold Not developed reference level, driven by a marked reduction in Zone 4 (Bight). A review is currently being undertaken and appropriate management options examined.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed Abalone Level 3 Sustainable: Commercial: Commercial: Acceptable (Greenlip/ Adequate 142t (Q) 98t Commercial: Catch below TACC Brownlip) (3440–5270 hours) (4097 hours) due to commercial industry Recreational: Recreational: decisions. Area 3 Greenlip Not formal 8t abalone stock indicator below threshold reference level and TACC reduced to 74t for 2018 season. Recreational: Catch levels are not considered a risk to stocks. South Coast Level 2 Sustainable: Commercial: Commercial: NA Nearshore Recovering – Under revision 154t (salmon) Commercial: Cobbler stock in and cobbler in Recreational: 220t (other) Wilson Inlet is being reviewed. Estuarine Wilson Inlet Not formal Recreational: Finfish Low salmon catch due to low Sustainable: 13–21t (95% CI, boat effort from limited market Adequate – only, top 10 species) demand. Others Recreational: Catch levels are not considered a risk to stocks. Albany/King Level 1 Sustainable: Commercial: 974t Acceptable George Adequate 2683t (Q) Catch below conservatively set Sound Recreational: quota. Purse Seine NA

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed Bremer Bay Level 1 Sustainable: Commercial: Commercial: Acceptable and Adequate 3000t (Q) 577t Catch below conservatively set Esperance Combined quota. Purse Seine Recreational: NA

Temperate Gummy and Sustainable: Commercial: Commercial: Acceptable Demersal whiskery Adequate – shark 725– 1,095t 780t (key species only) Catch of key shark species Gillnet and shark: Gummy and Recreational: within acceptable range. Demersal Level 5 whiskery NA Longline Level 5 assessment of key Dusky and Sustainable: commercial shark species sandbar Recovering – completed in 2017. shark: Dusky and Level 4 sandbar

South Coast Annual: Sustainable: Commercial: Commercial: Acceptable Demersal Level 1 Adequate Under development 213t; Commercial and recreational Scalefish Periodic: Recreational: Charter: 5t catch levels are not considered a Level 3 Not formal Recreational: risk to stocks due to fishing 38–51t (95% CI, boat mortality and spawning potential only, top 10 species) ratio at acceptable risk levels. Level 3 assessment completed in 2013/14.

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Fishery/ Assessment Breeding Catch (and effort) range Catch, effort and catch Catch (or effort or catch rate) resource level stock rate for season level acceptable and assessment reported1,2 explanation if needed Northern Inland Bioregion Lake Argyle Level 1 Sustainable: Commercial: 103t Acceptable Catfish Adequate 93–180t Catch within acceptable level. Recreational: NA Southern Inland Bioregion South-West Level 1 Sustainable: Commercial: 59,890 marron Acceptable Recreational Adequate NA (± 4516se) Catch within acceptable range Freshwater Recreational: 69,231 fish (±9447se) since 2003. 50,000–100,000 (marron) 50,000–120,000 (fish) 1. Commercial and recreational catch figures supplied for latest year/season available. 2. Where there are three or less licences operating in the fishery, annual catch levels are not reported due to confidentiality requirements.

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Appendix 3: State register of authorisations, exemptions and aquaculture leases

The State Register of authorisations, exemptions and Table A3 Recreational fishing licensed activities aquaculture leases is available to the public on application to Activity Number of activities the Registrar and payment of appropriate fees – see section 125 of the Fish Resources Management Act 1994 (FRMA). Recreational fishing from boat 135,384 Rock lobster 55,368 At 30 June 2018, the following items were recorded on the State Register: Abalone 17,094  167,513 recreational fishing licences of 243,254 varying Marron 10,779 fishing activities (note: although details of recreational Net fishing 15,705 fishing licences are recorded on the State Register, the South West fresh water angling 8,924 Registrar is prohibited from making these available for Total 243,254 public search – see section 125(6) of the FRMA)  10 aquaculture leases The commercial authorisations on the State Register  416 aquaculture licences consisted of the following:  6101 commercial authorisations of varying licence types. Table A4 Interim managed fishery permits Licensed recreational fishing activities consisted of the activities listed in Table A3. Permits Number of permits Octopus 30 Pilbara Fish Trawl 11 West Coast Demersal Gillnet & 16 Demersal Long Line West Coast Demersal Scalefish 60 Total 117

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Table A5 Managed fishery licences Licences Number of licences Licences Number of licences Abalone 50 South Coast Crustacean 40 Abrolhos Mid trawl 10 South Coast Estuarine 25 Broome Prawn 5 South Coast Purse Seine 33 Cockburn Sound Crab 12 South Coast Salmon 18 Cockburn Sound Fish Net 1 South West Salmon 6 Cockburn Sound Line & Pot 13 South West Trawl 10 Cockburn Sound Mussel 1 Southern Demersal Gillnet and 53 Exmouth Gulf Prawn 15 Demersal Longline Gascoyne Demersal Scale Fish 60 Specimen Shell 31 Kimberley Gill Net & Barramundi 4 Warnbro Sound Crab 1 Kimberley Prawn 121 West Coast Beach Bait Fish 1 Mackerel 51 West Coast Estuarine 13 Marine Aquarium Fish Corporate 1 West Coast Purse Seine 12 Marine Aquarium Fish Individual 11 West Coast Rock Lobster 643 Nickol Bay Prawn 14 West Coast Deep Sea Crustacean 7 Northern Demersal Scale Fish 15 Total 1,401 Onslow Prawn 30 Pilbara Trap 6 Shark Bay Crab 31 Shark Bay Beach Seine 10 Shark Bay Prawn 18 Shark Bay Scallop 29

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Table A6 Other licences Licences Number of licences Commercial Fishing Licence 2,353 Fish Processing Licence (land) 114 Fish Processing Licence (sea) 89

Fishing Boat Licence 1,291 Fishing Tour Operators Licence 207 Restricted Fishing Tour Licence 22 Permit to Construct a Fish Processing 474 Establishment (Land and sea) Carrier Boat Licence 33 Total 4,583

Fees to access the State Register and obtain copies of entries in, and extracts from, the register are prescribed in Schedule 1 Part 1 of the Fish Resources Management Regulations 1995. Table A7 Transactions on the Register Transactions Number of transactions Extracts and searches 502 Notation, removal and variation of 92 a security interest Total 594

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Table A8 State register of exemptions 2017/18 Note: this register refers to additional schedules and tables that are not provided in this document. Exemption no. Expiry Holder Purpose 2966 15/11/2017 John Keesing of CSIRO and To collect fish, invertebrates, algae, marine plants, sediment others as listed in Schedule 1 samples, phytoplankton and zooplankton from North West Shelf for the purposes of research. 2967 30/05/2020 Tim Langlois of The University To collect catch and release Western rock lobster, puerulus, of Western Australian (UWA) juveniles and adults from Seven Mile, White Point, Cliff Head, and others as listed in Desperate Bay, Beagle Islands and Jurien Bay for the purposes of Schedule 1 research. 2968 25/08/2017 Kate Swindells of UWA and To collect Southwestern long-necked turtles from 30 wetlands others as listed in Schedule 1 located across an urban-rural gradient in Albany, from Torndirrup National Park to Two People's Bay for the purposes of research. 2969 13/07/2020 Gardine Marine Sciences To collect samples of fish throughout Western Australian waters on (employees of) infrastructure, natural substrates and vessels, within ports areas, marinas and harbours and within 250m of designated anchorages and associated moorings and navigation structures associated with the port areas, marinas and harbours, for the purpose of undertaking surveys for invasive marine species. 2970 31/10/2017 Bruce Cockman For the purposes of assisting the Science and Resource Assessment Branch, Fisheries Division of DPIRD in conducting the annual independent breeding stock survey . 2971 18/07/2020 Chenae Tuckett of UWA and 1. To collect hard corals (Order Scleractinia) from Kalbarri, Port others as listed in Schedule 1 Gregory, Jurien Bay, Perth metro and Hamelin Bay 2. To recruit tile retrieval and redeployment, deployment of plankton nets to determine spawning timing, tagging of coral colonies, staining and collection of corals and creating permanent plots for the purposes of research.

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Exemption no. Expiry Holder Purpose 2972 31/12/2019 Peter Cook and Judy To collect Gilgie or Koonac and Western Pygmy perch from Maughan of UWA locations as listed in Exemptions Table 1 for the purposes of research. 2973 03/09/2017 Southwest Freshwater Anglers To fish for freshwater fish, without holding a current freshwater angling licence. 2974 31/12/2019 Leah Beesley, Michael To collect fish from Fitzroy River for the purposes of research. Douglas, Brad Pusey and Chris Keogh of UWA 2975 31/12/2018 Stephen McLeod To collect four leafy sea dragons (Phycodurus eques) for use as broodstock for aquaculture purposes. 2976 30/09/2020 Trevor Price For the purpose of using set nets up to two-and-a-half hours after sunrise in the waters of Area 3 of the West Coast Estuarine Managed Fishery as required in order to minimise the mortality of bycatch species. 2977 01/01/2020 Bruce Cockman and Jeff To be in possession of totally protected rock lobsters (i.e. under Cockman legal minimum size or tarspot) taken from waters of the West Coast Rock Lobster Managed Fishery. 2978 30/06/2020 Claudia Mueller of Murdoch To collect plankton, jellyfish, mussels, other marine invertebrates, University and others as listed Daphnia, Planarians and leeches from the locations listed in Table 1 in Schedule 1 and other locations if required in the Perth metropolitan area. 2979 31/10/2017 Craig Lawrence of DPIRD To collect Tilapia (Oreochromis mossambicus) from Chapman Fisheries Division and Derik River. Aquary of UWA 2980 01/08/2018 Mark Thiele of Murdoch To collect algae from Peel Harvey Estuary, Woodman Point and University and others as listed North Mole. in Schedule 1

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Exemption no. Expiry Holder Purpose 2981 01/08/2020 Chris Hallett of Murdoch To collect small benthic invertebrates and macrophytes from University and others as listed various sites throughout the basins and tidal rivers of the Peel- in Schedule 1 Harvey Estuary. 2982 31/10/2017 Mike Van Keulen of Murdoch To collect the coral Coelastrea sp. from Hall Bank Reef, Fremantle. University and others as listed in Schedule 1 2983 15/10/2017 Persons fishing recreationally To fish for demersal scalefish, be in possession of demersal scalefish on a boat, or bring onto land any demersal scalefish as part of the National Gone Fishing Day to promote heathy outdoor activity. 2984 15/10/2017 Persons fishing recreationally To fish recreationally for rock lobster and all freshwater fish (other than crustaceans) and to fish by means of a fishing net and to fish from a boat without holding a recreational fishing licence or a recreational (boat) fishing licence that would otherwise be required to engage in these activities as part of the National Gone Fishing Day to promote heathy outdoor activity. 2985 30/06/2018 Jemma Hopkins, Tracy Muir, To collect and remove introduced freshwater species from Duggan staff and students of Dam, Cowaramup. Cowaramup Primary School 2986 30/04/2018 Karissa Lear of Murdoch To collect sea mullet (Mugil cephalus) and yellow eye mullet University and others as listed (Aldrichetta forsteri) from open waters around Broome. in Schedule 1 2987 30/08/2019 James Tweedley of Murdoch To collect fish and benthic macroinvertebrates from 10 sites within University and others as listed Toby Inlet. in Schedule 1 2988 14/07/2020 Rick Roberts of UWA and To collect Invertebrates from Busselton, Cockburn Sound, Jurien others as listed in Schedule 1 Bay, Trigg, Swan River and North and South Mole.

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Exemption no. Expiry Holder Purpose 2989 30/08/2020 James Tweedley of Murdoch To collect fish and benthic macroinvertebrates from 20 sites in University and others as listed Vasse-Wonnerup wetlands. in Schedule 1 2990 30/09/2019 Jennifer Chaplin and Angus To collect invertebrates from inland saline environments throughout Lawrie of Murdoch University south-western Australia (e.g. around Esperance, Kalgoorlie, Wongan Hills and Dalwallinu). 2991 31/12/2017 Mike Van Keulen and Sophie To collect benthic invertebrates from jetty piles from Busselton Teede of Murdoch University Jetty. 2992 03/10/2017 Sam Koncurat For the purposes of assisting the Research Division, Department of Fisheries, in conducting the annual independent breeding stock survey and the Department’s long-term monitoring of the recovery of demersal species in the West Coast Bioregion. 2993 03/10/2017 Matthew Fong For the purposes of assisting the Research Division, Department of Fisheries, in conducting the annual independent breeding stock survey. 2994 11/09/2020 Hayden Lancelot Webb To take fish for bait, namely mullet, garfish and sand whiting for commercial purposes within one nautical mile of North Turtle Island. 2995 14/01/2021 West Coast Rock Lobster To allow the holders of a managed fishery licence, and persons Managed Fishery licence acting on their behalf, to operate in the fishery when the usual numbers 1414, 2233, 2241, entitlement on the license is less than 300 units. 2245, 1597 2996 31/10/2017 Jen Chambers, Belinda To collect aquatic invertebrates and aquatic and fringing vegetation Robson and students of from a variety of urban wetlands in the Perth, Mandurah and Murdoch University Bunbury metropolitan regions for the purposes of teaching.

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Exemption no. Expiry Holder Purpose 2997 30/09/2018 South Metropolitan TAFE 1. To collect a total of 200 western king prawns (Melicertus latisulcatus) by deep diving, at the area described in Schedule 3.1. 2. To undertake aquaculture trials of named species at the area described in Schedule 3.2. 2998 31/07/2019 Cockburn Sound Line and Pot To allow the trial of baited octopus pots in the CSLPMF. Managed Fishery (CSLPMF) licence holders 2999 30/11/2017 James Gilmour of Australian To collect coral from Rowley Shoals and Seringapatam Reef. Institute of Marine Science and others as listed in Schedule 1 3000 30/12/2019 Bridgette Poulton and Belinda To collect dragonfly and damselfly larvae and exuviae from various Robson of Murdoch University freshwater wetlands within the Perth metropolitan region, including Ramsar wetlands within the Swan Coastal Plain. 3001 03/11/2017 Bruce Cockman and Jeff To operate 160 commercial rock lobster pots to soak, adjacent to Cockman breeding stock survey grounds in the waters of the Abrolhos. 3002 03/11/2017 James Chandler To operate 160 commercial rock lobster pots to soak, adjacent to breeding stock survey grounds in the waters off Dongara. 3003 03/11/2017 Kjell Stokke and Karl Stokke To operate 160 commercial rock lobster pots to soak, adjacent to breeding stock survey grounds in the waters off Lancelin. 3004 11/10/2017 Muhammad Azmi Abdul To collect sponge (Carteriospongia foliascens) from Adele Island, Wahab of AIMS and others as Beagle Reef and White Island (Kimberley). listed in Schedule 1

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Exemption no. Expiry Holder Purpose 3005 30/09/2020 Maxima Pearling Co Pty Ltd To collect spat of the following oyster species and undertake research and development trials of those species at the areas described in Schedule 3:  western rock oyster (Saccostrea cucullata)  tropical black lip oyster (Saccostrea echinata)  coral oyster (Saccostrea scyphilla). 3006 18/10/2017 Jesse Shakespeare The total collection of no more than 340 native and western rock oysters, 70 mud whelks and 1750 grams of live sand from the locations listed in Schedule 3 to test for heavy metal and hydrocarbon contaminates. 3007 01/10/2019 Bianca Owen of Murdoch To collect phytoplankton and zooplankton from the Swan-Canning University and others as listed Estuary. in Schedule 1 3008 30/12/2019 Nicole Said of Edith Cowan To collect Seagrass from Exmouth Gulf, Mangrove Islands and University and others as listed Dampier. in Schedule 1 3009 30/05/2018 James Tweedley of Murdoch To collect prawns and fish from 20 nearshore and 16 offshore sites University and others as listed in the Swan-Canning Estuary. in Schedule 1 3010 30/10/2020 Stephen Beatty of Murdoch To collect introduced species from Vasse River, Canning River, University and others as listed Southern River, westerly flowing rivers and streams of the Cape to in Schedule 1 Cape region (including Margaret River), Blackwood River, Murray River, Serpentine River, Warren River, Brunswick, Preston, Yule, Helena and Swan Coastal Plain Wetlands in the Perth metropolitan region. 3011 30/01/2018 Danny Wimpress To take small tissue samples and tag and release pink snapper (Pagrus auratus) from various locations in Cockburn Sound and Warnbro Sound.

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Exemption no. Expiry Holder Purpose 3012 31/12/2018 Mr Paul Merendino and Mr To take blue swimmer crabs (Portunus armatus), three spot sand Antoni Merendino crabs (Portunus sanguinolentus) and coral crabs (Charybdis feriata) for a commercial purpose by means of crab trap of a design approved by the DPIRD Fisheries Research Division. 3013 15/02/2018 Maria Samsonova of Edith To collect rabbitfish/spinefoot (Siganus fuscescens) from seagrass Cowan University and others meadows near rocky reefs in Cockburn Sound, Success Bay and as listed in Schedule 1 Marmion Marine Park. 3014 31/03/2018 Craig Lawrence of Fisheries To collect Tilapia (Oreochromis mossambicus) from Chapman Division and Derik Aquary of River. UWA 3015 19/04/2019 Stephen Beatty of Murdoch To collect fish from up to 100 firefighting water points from the University and others as listed catchments of the locations listed in Table 1. in Schedule 1 3016 13/11/2017 Michael O'Leary of Curtin To collect coral cores from living massive Porites sp. and other University and others as listed suitable corals from Exmouth Gulf. in Schedule 1 3017 30/04/2018 West Coast Rock Lobster Under quota, total catch is capped, so permitting more pots to be Managed Fishery Licence used will help improve profitability, while not impacting on (persons fishing under the sustainability. authority of) 3018 31/12/2018 North Regional TAFE To culture the following species at the area described in Schedule 3. 3019 01/04/2020 Justin Benson of UWA and To collect Freshwater mussels from Goodga River, Kent River and others as listed in Schedule 1 Deep River. 3020 30/11/2018 James Tweedy of Murdoch To release hatchery-reared blue swimmer crabs and collect them at University and others as listed the end of the experiment from the cooling water pond closest to the in Schedule 1 beach adjacent to the old Cockburn Power Station.

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Exemption no. Expiry Holder Purpose 3021 28/02/2018 Muhammad Azmi Abdul To collect sponges from shallow reefal areas (up to 12m depth) Wahab of AIMS and others as around Rottnest Island. listed in Schedule 1 3022 30/06/2018 South Coast Crustacean To fish using rock lobster pots that are not fitted with a sea lion Managed Fishery licence exclusion device. holders 3023 26/11/2020 Stephen Beatty of Murdoch To collect fish from one site on Record Brook, and one site University and others as listed upstream and one site downstream of the confluence with the in Schedule 1 Donnelly River. 3024 28/02/2018 Shark Bay Scallop Managed To fish for scallops for a commercial purpose using the methods Fishery licence SBSC 2097 described in the Shark Bay Scallop Managed Fishery Management Plan 1994. 3025 30/06/2018 Ana Giraldo and Gary To collect kelp (Ecklonia radiata) from Rottnest Island. Kendrick of UWA 3026 01/01/2020 Bruce Cockman and Jeff To operate 80 commercial rock lobster pots, adjacent to breeding Cockman stock survey grounds in the waters off Jurien, including the closed area specified in Schedule 7. 3027 30/01/2018 Ryan Thipthorp To take small tissue samples and tag and release pink snapper (Pagrus auratus) from various locations in Cockburn Sound and Warnbro Sound. 3028 06/12/2017 Adelaide Bevilaqua and Peter The total collection of no more than 150 native rock oysters Michael (Saccostrea cucullata) from the locations listed in Schedule 3 to test for heavy metal contaminates. 3029 14/12/2020 South West Trawl Managed To fish with a Bison board not exceeding the size of a No. 5 board Fishery licence holders with measurements not exceeding 1.460m in length and 0.980m in breadth. 3030 14/02/2018 Western Rock Lobster Local An interim mechanism to enhance the supply of rock lobster to the Access Tag Trial Western Australian community.

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Exemption no. Expiry Holder Purpose 3031 31/12/2020 Broome Hatcheries Pty Ltd To collect the maximum quantities of fish per annum for aquaculture broodstock, public display and commercial purposes. 3032 31/07/2020 Chris Hallett of Murdoch To sample the entire fish community from the Swan Estuary. University and others as listed in Schedule 1 3033 12/12/2017 Rasidah Dobbs, Chastity King To collect plankton, juvenile sand whiting and trumpeter, and and students of Rockingham invertebrates from the shoreline along Palm Beach near Mangles Senior High School Bay. 3034 31/09/2019 Alan Cottingham of Murdoch To collect blue mussels (Mytilus edulis) from Melville Waters and University and others as listed Black pygmy mussels (Xenostrobus securis) from the Swan River in Schedule 1 Estuary, see Table 1. 3035 31/01/2020 Tracy Brothers of Albany To collect finfish and molluscs (excluding cephalopods) species Senior High School and others from Oyster Harbour, Princess Royal Harbour, Middleton Beach, as listed in Schedule 1 Nannarup Beach and the Kalgan River. 3036 31/08/2020 Ruben-Lee (Ben) Roennfeldt To conduct a breeding trial of captive hairy marron using best of South Metropolitan TAFE practice aquaculture techniques at 1 Fleet St, Fremantle. and Rodney Duffy of DPIRD 3037 25/12/2017 West Coast Rock Lobster In the case of persons described in Schedule 1, to exceed their Managed Fishery licence entitlement for the 2017/18 season of the West Coast Rock Lobster WCLL 1401 Managed Fishery by 450kg. 3038 30/06/2018 Jonathan Bilton To produce, market and sell shellfish spat of a variety of species to existing licensed aquaculture operators. 3039 14/01/2019 S Koncurat and others as For the purposes of assisting DPIRD in determining the complete listed in Schedule 1 size range of lobsters present in the various water depths and areas of the West Coast Rock Lobster Fishery and to trial efficiency of various approved pot designs.

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Exemption no. Expiry Holder Purpose 3040 12/12/2019 Claire Ross of UWA and To transport and release corals temporarily back to original others as listed in Schedule 1 collection site and retrieve at the end of the experiment in Coral Bay. 3041 14/01/2018 West Coast Rock Lobster To supply up to 450kg of lobsters for the purpose of being provided Managed Fishery licence for the Mission Australia Christmas Lunch on 25 December 2017. WCLL 1401 3042 31/12/2018 Ashley Sutton 1. To collect a maximum of 500kg per algae species for broodstock. 2. To culture the species at the area defined under Schedule 3.2 in the Abrolhos Islands. 3043 31/12/2018 Andrew Joseph Basile and To undertake research and development on live rock aquaculture at Tracey Lee Basile three areas, each approximately 0.2ha in area, at the Pelsaert Group, Abrolhos Islands. 3044 31/12/2020 Persons fishing from a 1. Fish for scalefish by fishing net from, or with the use of a licensed fishing boat licensed fishing boat. 2. Possess, store or transport scalefish taken by fishing net on board a licensed fishing boat. 3. Land scalefish taken under the authority of this exemption; and to sell or deal in those fish without the person being liable to prosecution under section 74 of the Fish Resources Management Act 1994. 3045 30/06/2018 Andrew Joseph Basile and For the purpose of enabling the collection of aquaculture Tracey Lee Basile broodstock. 3046 30/06/2019 Andrew Joseph Basile and For the purpose of enabling the collection of aquaculture Tracey Lee Basile broodstock. 3047 31/12/2020 Tim Storer of the Department To collect fish and crayfish from all rivers, estuaries and estuarine of Water and Environmental inlets, including tributaries, creeks, channels and entrances, Regulation (DWER) and primarily Jurien Bay to Esperance. others as listed in Schedule 1

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Exemption no. Expiry Holder Purpose 3048 29/01/2021 Mr Rick Roberts of UWA and To collect fish from Garvey Park to Claremont Jetty and Riverton others as listed in Schedule 1 Bridge to Claremont Jetty. 3049 14/01/2013 WCLL Zone B licence holders For the purposes of permitting rock lobster fishing in the Big Bank area of the West Coast Rock Lobster Managed Fishery. 3050 30/06/2019 Chenae Tuckett of UWA and To collect algae and associated invertebrates, herbivorous reef fish others as listed in Schedule 1 from localities between Esperance and Ningaloo Reef, extending out to the Abrolhos Islands. 3051 31/03/2021 Salvador Zarco Perello of To collect rabbitfish (Siganus fuscescens) and parrotfish (Scarus UWA and others as listed in ghobban) from locations listed in Table 2. Schedule 1 3052 01/04/2018 Michael Moses of UWA To collect invertebrates from Yanchep Lagoon, South Cottesloe, Waterman's Reef, Trigg, Burns Beach and Iluka. 3053 31/12/2019 Northern Demersal Scalefish When a vessel has fished using traps in Zone C of Area 2 of the Managed Fishery licence Northern Demersal Scalefish Managed Fishery, the class of holders persons specified in Schedule 1 may not be subject to the formula at Schedule 7 Item 1 of the Northern Demersal Scalefish Fishery Management Plan 2000, otherwise used to determine the extent of fishing that has occurred. This will allow for a revised method of determining the extent of fishing that has been carried out, following a nomination of intention to fish using traps in Zone C of the Northern Demersal Scalefish Managed Fishery. 3054 31/12/2019 Northern Demersal Scalefish 1. The master of an authorised boat may have handlines with more Managed Fishery licence than six hooks on board the vessel. holders 2. The master and crew of an authorised boat may fish in Area 2 of the Northern Demersal Scalefish Managed Fishery with a handline that has more than six hooks. 3055 23/02/2018 Dr Mike Van Keulen of To collect seagrasses, macroalgae, benthic invertebrates and fish Murdoch University and others from Shoalwater Islands Marine Park (adjacent to Garden Island as listed in Schedule 1 causeway, Mangles Bay).

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Exemption no. Expiry Holder Purpose 3056 28/02/2021 Professor Jonathan P Evans To collect Australian sea urchin (Heliocidaris erythrogramma) from of UWA and others as listed in South Mole Jetty, Fremantle and Woodman Point, Cockburn Sound. Schedule 1 3057 15/02/2018 Dr Peter Last of CSIRO and To collect sandfishes, Lesuerina sp. and Crapatalus sp., from the others as listed in Schedule 1 intertidal zone near Busselton Jetty. 3058 08/02/2023 Fishing boat licence (FBL) The commercial fishing by purse seining in the Southern holders numbers 2265, 2290 Development Zone for small nearshore pelagic scalefish species and 2320 with the exception of Australian salmon (Arripis truttaceus), Australian herring (Arripis georgianus) and pink snapper (Pagrus auratus) and for FBL 2290 with the exception of pilchard (Sardinops sagax). 3059 12/02/2020 Octopus Interim Managed For the purpose of allowing baited octopus pots to be used to fish Fishery (OIMF) permit holders for octopus by the holder of a permit over a two-year trial period, to (minimum of 60 units) provide information for implementation of more permanent management arrangements for the OIMF. 3060 12/03/2018 West Coast Estuarine For the purpose of allowing crab pots to be set, remain and be Managed Fishery licence pulled in the waters of Area 2 of the West Coast Estuarine Managed holders as listed in Schedule 1 Fishery in order to service public demand for fresh crabs for Crab Fest. 3061 28/02/2021 Maxima Pearling Company 1. To collect broodstock of the oyster species specified below and Pty Ltd transport them to the Albany Multi Species Mollusc Hatchery 2. To collect oyster spat and undertake research and development trials of those species at the areas described in Schedule 3, namely:  western rock oyster (Saccostrea cucullata)  milky rock oyster (Saccostrea scyphophilla). 3062 31/12/2019 Greg Christian To harvest and sell yabbies (Cherax destructor) from the area described in Schedule 3.

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Exemption no. Expiry Holder Purpose 3063 23/02/2023 Abrolhos Island and Mid West To fish for prawns or scallops in the Abrolhos Islands and Mid West Trawl Managed Fishery Trawl Managed Fishery with the use of two, seven fathom nets and licence holders unload whole scallops without any restrictions imposed under Clause 18 of the Abrolhos Islands and Mid West Trawl Managed Fishery Plan. 3064 30/11/2019 James Gilmore of AIMS and To collect coral from Rowley Shoals sites as per Table 1. others as listed in Schedule 1 3065 21/05/2018 Dr Tom Bridge of Queensland To collect scleractinian corals from the Abrolhos Islands, mainly Museum Network and others Easter Group and Pelsaert Group. as listed in Schedule 1 3066 29/02/2020 Emama Nguda Aboriginal To collect a total of 50 barramundi (Lates calcarifer) per calendar Corporation (employees of) year to use as broodstock for aquaculture purposes. 3067 30/06/2018 Jonathan Bilton To produce, market and sell shellfish spat to existing licensed aquaculture operators. 3068 20/03/2021 Murdoch University – persons To monitor for invasive species in the areas of the Barrow Island as listed in Schedule 1 LNG Project and Wheatstone LNG Project to meet ministerial conditions under the Environmental Protection Act 1986. 3069 10/04/2018 South Coast Salmon and For the penning of Western Australian salmon for up to 24 hours. South West Coast Salmon Managed Fishery licence holders 3070 28/02/2019 Shark Bay Scallop Managed 1. To fish for scallops for a commercial purpose using the methods Fishery licence holders (as described in the Shark Bay Scallop Managed Fishery listed in Schedule 1) Management Plan 1994. 2. To fish for scallops using two, seven fathom nets with mesh no less than 100mm without the use of a fish escape device. 3. To fish for scallops at any time of the day when using two, seven fathom nets.

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Exemption no. Expiry Holder Purpose 3071 28/02/2019 Shark Bay Scallop Managed 1. To fish for scallops for a commercial purpose using the methods Fishery licence holders (as described in the Shark Bay Scallop Managed Fishery listed in Schedule 1) Management Plan 1994. 2. To fish for scallops using two, seven fathom nets with mesh no less than 100mm without the use of a fish escape device. 3. To fish for scallops at any time of the day when using two, seven fathom nets. 3072 28/02/2019 Shark Bay Scallop Managed 1. To fish for scallops for a commercial purpose using the methods Fishery licence holders (as described in the Shark Bay Scallop Managed Fishery listed in Schedule 1) Management Plan 1994. 2. To fish for scallops using two, seven fathom nets with mesh no less than 100mm without the use of a fish escape device. 3073 16/11/2018 Shark Bay Scallop Managed 1. To fish for scallops for a commercial purpose using the methods Fishery licence no. 2128 described in the Shark Bay Scallop Managed Fishery Management Plan 1994. 2. To fish for scallops using two, seven fathom nets with mesh no less than 100mm without the use of a fish escape device. 3. To fish for scallops at any time of the day when using two, seven fathom nets. 3074 16/11/2018 Shark Bay Scallop Managed 1. To fish for scallops for a commercial purpose using the methods Fishery licence holders (as described in the Shark Bay Scallop Managed Fishery listed in Schedule 1) Management Plan 1994. 2. To fish for scallops using two, seven fathom nets with mesh no less than 100mm without the use of a fish escape device. 3. To fish for scallops at any time of the day when using two, seven fathom nets.

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Exemption no. Expiry Holder Purpose 3075 28/02/2019 Shark Bay Scallop Managed 1. To fish for scallops for a commercial purpose using the methods Fishery licence holders (as described in the Shark Bay Scallop Managed Fishery listed in Schedule 1) Management Plan 1994. 2. To fish for scallops using two, seven fathom nets with mesh no less than 100mm without the use of a fish escape device. 3. To fish for scallops at any time of the day when using two, seven fathom nets. 3076 16/11/2018 Shark Bay Scallop Managed 1. To fish for scallops for a commercial purpose using the methods Fishery licence no. 2124 described in the Shark Bay Scallop Managed Fishery Management Plan 1994. 2. To fish for scallops using two, seven fathom nets with mesh no less than 100mm without the use of a fish escape device. 3. To fish for scallops at any time of the day when using two, seven fathom nets. 3077 30/06/2019 MG Kailis Pty Ltd To collect a total of 2000 individual black tiger prawns (Penaeus monodon) and deliver them to Marine Farms Pty Ltd (t/a Seafarms) to use as broodstock for aquaculture purposes. 3078 12/04/2018 Professor Paul Lavery of Edith Collection of fish from Walpole and Nornalup Inlets Marine Park. Cowan University 3079 1/4/2021 Kimberley Prawn Managed Use of trawl nets with mesh size greater than 50mm on approved Fishery licence holders replacement boats. 3080 25/02/2021 Zoe Richards of Curtin Collection of marine invertebrates, focusing on scleractinian coral, University from state waters of Western Australia from Esperance to the Northern Territory border. 3081 31/03/2021 WA Ocean Park Pty Ltd To allow employees of the WA Ocean Park Pty Ltd to collect fish from the Shark Bay area for the purpose of public display and education.

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Exemption no. Expiry Holder Purpose 3082 30/11/2018 Mareterram Fisheries Pty Ltd To allow Mareterram Fisheries Pty Ltd to trial alternative otter boards (Thyson boards) on its vessels in the Shark Bay Prawn Managed Fishery and Shark Bay Scallop Managed Fishery Licence for the 2018 season. 3083 30/06/2018 Dr Ocean Ramsey and Dr Ben To conduct scientific testing of interactions between white sharks Fitzpatrick (from companies as and RPELA shark deterrents from Salisbury Island. listed in Schedule 1) 3084 29/03/2018 Tony Westerberg To allow Tony Westerberg to use a herring G-net at Cheynes Beach on 29 March 2018 to take up to one tonne of herring for donation to Albany Festival of the Sea. 3085 31/12/2019 Northern Demersal Scalefish To allow for masters of authorised vessels operating in Area 1 of Area 1 Managed Fishery the Northern Demersal Scalefish Managed Fishery to trial the use licences alternative gear in order to decrease shark depredation. 3086 01/04/2021 DPIRD (West Coast Demersal To allow the storage and transport of filleted demersal scalefish on Scalefish Interim Managed board, and landing of filleted demersal scalefish from boats fishing Fishery permits) in the West Coast Demersal Scalefish Interim Managed Fishery. 3087 31/01/2021 DPIRD (Specimen Shell To allow current Specimen Shell Managed Fishery Licence (MFL) Managed Fishery licence holders to fish for specimen shell using up to two fishing boats of holders) any size and up to two nominated divers who are not endorsed on the MFL to fish for specimen shell along with fishing for dead specimens of the genus Haliotis except for Haliotis roei, H. laevigata and H. conicopora and fishing for specimen shells of the genus Pecten while long-term management arrangements can be developed. 3088 31/12/2021 Angela Rossen of UWA Collection of floating wrack or fresh beach wrack from South Cottesloe (outside of Fish Habitat Protection Area), Swanbourne Beach, Burns Beach and Rockingham beaches and Woodman Point and Rottnest Island.

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Exemption no. Expiry Holder Purpose 3089 31/10/2018 DPIRD (Giuseppe Ricciardi To allow Giuseppe Ricciardi Nominees Pty Ltd to commercially fish Nominees Pty Ltd) for crabs in the Shark Bay Crab Managed Fishery using the methods described in the Shark Bay Crab Managed Fishery Management Plan 2015 without a Managed Fishery Licence. 3090 01/09/2018 Jennifer Verduin, Paola Magni To deploy and retrieve floats from Southern Flats, Cockburn and and student volunteers of coastal jetties within Cockburn Sound. Murdoch University 3091 20/03/2020 Paul Close and Madison To collect trout minnow (Galaxias truttaceus) and other resident Howard of UWA species from Goodga River and Goodga River Weir. 3092 30/10/2018 Kyle Stewart, Fiona Valesini To collect pink snapper (Chrysophrys auratus), silver bream and Daniel Yeoh of Murdoch (Rhabdosargus sarba) and black bream (Acanthopagrus butcheri) University and small invertebrates from Walpole and Nornalup Inlets Marine Park. 3093 05/10/2018 Recreational and commercial To allow certain commercial or recreational fishing activity in the fishing licence holders as areas referred to in Schedule 2. listed in Schedule 1 3094 09/04/2020 WCLL Managed Fishery To facilitate efficient operations in the West Coast Rock Lobster licence holders (locations as Managed Fishery by permitting access to infrastructure at the listed in Schedule 2) Augusta Marina, Mangles Bay and Big Pigeon Island at the Abrolhos Islands. 3095 30/09/2020 Maxima Pearling Company To allow Maxima Pearling Company to collect oyster spat and Pty Ltd conduct a research and development trial. 3096 01/05/2021 Austfish Pty Ltd To trial a new net design and assess any increase in economic performance. 3097 31/12/2020 Tim Storer of DWER and To collect fish and crayfish from all waterways and waterbodies in others as listed in Schedule 1 Western Australia, primarily Jurien Bay to Esperance

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Exemption no. Expiry Holder Purpose 3098 30/06/2023 Fisheries officers and others For the purpose of the capture, tagging and the release of sharks as listed in Schedule 1 for public safety.

3099 30/09/2020 Rosanna Hindmarsh of the To catch, record and release native species from the locations listed Department of Biodiversity, below: Conservation and Attractions  lower Ellen Brook (upstream of the Millhouse Rd Bridge; (DBCA) and others as listed in downstream of the Millhouse Rd Bridge; downstream at Brand Schedule 1 Hwy Bridge; upstream of the nutrient intervention structure at the Brand  Yal Yal Brook. 3100 30/04/2021 North Regional TAFE For the purpose of enabling the collection of aquaculture broodstock for a commercial purpose. 3101 30/05/2018 Maaeten De Brauwer, Joey To collect seahorses (Hippocampus subelongatus) from Kwinana Dibattista and Georgia Nester Bulk Jetty and Ammunition Jetty and Bicton Bath, Blackwall Reach, of Curtin University The Coombe and Rocky Bay in the Swan River. 3102 30/06/2021 Colin Johnson, staff and To collect fish and crustaceans from the Gascoyne, Wooramel, students of Central Regional Murchison, Hutt, Chapman, Greenough, Irwin, Arrowsmith, Hill and TAFE Moore rivers. 3103 31/12/2020 Mike Van Keulen, staff and To collect seagrass species from the locations specified in Table 1. students of Murdoch University 3104 15/04/2019 Dr Paul Close and Emeritus To sample the whole fish community from Warriup Lake and Professor J Dale Roberts of Mullocullop Creek, Green Range. UWA 3105 30/04/2019 Abrolhos Island Oysters Pty For the purpose of enabling the collection and grow-out of oyster Ltd spat.

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Exemption no. Expiry Holder Purpose 3106 31/10/2018 WCLL licence holders and To provide further information on permitting the retention of setose others as listed in Schedule 1 western rock lobster in contributing to reducing whale entanglements in the West Coast Rock Lobster Managed Fishery, and to provide the industry with the opportunity to further market setose western rock lobster. 3107 30/11/2018 Fish processor licence holders The possession, consignment and sale of totally protected western as listed in Schedule 1 rock lobster as described in Division 1, Part 2 of Schedule 2 of the Fish Resources Management Regulations 1995, by the persons described in Schedule 1. 3108 29/04/2021 Mackerel Managed Fishery To permit a master of an authorised boat operating in the waters of licence holders (masters of the fishery to submit a nomination to land mackerel prior to landing authorised boats) mackerel and specify either the number or whole weight of mackerel that are to be unloaded if the fish are to be landed whole or gill and gutted only or headed and gutted only. 3109 31/07/2018 Dr Ty Hibberd at GHD Pty Ltd To collect and retain a total of 200 fish and 100 invertebrates using and other GHD personnel the following collection methods: seine net, cast net, line fishing, traps and/or pots. 3110 29/06/2019 Dr Ed Chester, Associate To collect freshwater invertebrates from locations as per Table 1. Professor Belinda Robson and Dr Scott Strachan of Murdoch University 3111 30/03/2019 Dr Ed Chester, Dr Belinda To collect saltmarsh mosquito and other saltmarsh invertebrates Robson and Dr Scott Strachan from saltmarshes at Black Lake, the Serpentine River and of Murdoch University Leschenault Estuary. 3112 31/01/2021 Holly Emery-Butcher, Belinda To collect native crustaceans from locations as per Table 1. Robson, Stephen Beatty, Students and volunteers of Murdoch University

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Exemption no. Expiry Holder Purpose 3113 31/12/2020 Oscar Serrano of Edith Cowan To collect seagrass, mangrove and tidal marsh plants, macroalgae University and others as listed and sediments from seagrass meadows, tidal marshes and in Table 1 mangroves from locations as per Table 2. 3114 30/08/2018 Dr Mark Meekan of AIMS and To collect red emperor and sediment samples. others as listed in Schedule 1 3115 30/11/2019 Lynette Hillier, teachers and To collect and release blue swimmer crabs from Koombana Bay, staff of Manea Senior College Bunbury and Leschenault Estuary, Australind. and Thomas Bastow 3116 15/05/2018 WCLL Managed Fishery An interim mechanism to enhance the supply of rock lobster to the licence holders Western Australian community. 3117 30/04/2019 Drew Wassman and Aaron For the purposes of assisting the Fisheries Science and Resource Schofield Assessment Division in determining the complete size range of crabs present in the various water depths and areas of the fishery. 3118 31/08/2020 Gascoyne Demersal Scalefish To trial a reduced pink snapper minimum debit rule in the Gascoyne Managed Fishery licence Demersal Scalefish Managed Fishery. holders 3119 21/05/2999 Fisheries officers, research For any activity required to relocate fish when necessary. officers and those persons assisting 3120 31/12/2020 Cygnet Bay Consolidated Pty To allow for the collection of listed bivalves at leases in King Sound Ltd for research purposes only. 3121 31/05/2021 North Regional TAFE For the purpose of enabling the collection of aquaculture broodstock for a commercial purpose. 3122 28/02/2019 Fred Wells, Marthe Monique To collect marine whelks (Thais orbita) from locations as per Table Gagnon and students of Curtin 1. University

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Exemption no. Expiry Holder Purpose 3123 30/06/2019 Alan Cottingham, James To collect blue mussels (Mytilus edulis) seeded from spat collected Tweedley, Chris Hallet and from Blue Mussel Farm from 32 sites in the Peel-Harvey Estuary. Lauren Peck of Murdoch University 3124 30/01/2021 Stephen Beatty and others as To collect catch, tag and release estuarine and freshwater fish from listed in Schedule 1 Canning River within 5km upstream and downstream of Kent St Weir. 3125 30/04/2019 Jane Chambers, Dallas To collect aquatic plants and algae from four sites at each of Weeli Campbell and Christopher Wolli Creek, Marilana Creek, Kalgan's Pool and Bamboo Springs. Hofmeester of Murdoch University 3126 14/06/2019 George and Shane Sutton, To allow a recreational gear trial of prototype prawn click nets in the Laurie Sheridan and John and Peel-Harvey Estuary. Michael Leyton 3127 31/03/2021 Abalone Managed Fishery To trial new processing techniques for greenlip and brownlip licence holders AB1015 and abalone taken from area 3 of the Abalone Managed Fishery. AB1910 3128 10/04/2019 Recreational and commercial To allow certain commercial or recreational fishing activity in the fishers as specified in areas referred to in Schedule 2. Schedule 1 3129 30/06/2021 Central Regional TAFE (CRT) To allow CRT to collect various species as broodstock for aquaculture purposes. 3130 31/07/2021 Wetland Research and To allow employees of Wetland Research and Management to take Management fish from freshwater creeks and rivers of the Kimberley region for the purposes of research on the level of metals in fish tissue. 3131 02/11/2018 Jane Chambers, Belinda To collect aquatic invertebrates from urban wetlands in the Perth, Robson and students of Mandurah and Bunbury metropolitan regions for the purposes of Murdoch University teaching.

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Exemption no. Expiry Holder Purpose 3132 30/06/2019 DBCA For the purposes of enabling the personnel of DBCA to undertake research and monitoring projects to support adaptive management of the State's marine parks and reserves and aquatic environment, and to conserve marine fauna across WA. 3133 30/06/2019 Department of Fisheries For the purposes of enabling the department’s Fisheries Science Science and Resource and Resource Assessment personnel to undertake aquatic science Assessment Branch research and conservation projects for the sustainable management and development of the State's fish resources and the protection of fish habitats. 3134 30/06/2019 Stephen Beatty of Murdoch To collect Western Pygmy perch (Nannoperca vittata) and Western University and others as listed minnow (Galaxias occidentalis) from Wilyabrup Brook, downstream in Schedule 1 of Cowaramup town for the purposes of research. 3135 30/06/2019 Officers of DPIRD (and For the purposes of enabling department personnel to undertake masters of vessels under their research and conservation projects for the sustainable management personal direction) and development of the State's fish resources and the protection of fish habitats. 3136 09/07/2018 Mike Van Keulen, teaching To collect macroalgae and benthic invertebrates from Ningaloo staff and students of Murdoch Marine Park for the purposes of teaching. University

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